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Fannie Mae and Freddie Mac Offer A Reprieve for Unemployed Borrowers Yet Beware of Unpaid Balances Increasing.

Posted on January 26th, 2012 by Carlo Capomazza

22mort graphic articleLarge6 Fannie Mae and Freddie Mac Offer A Reprieve for Unemployed Borrowers Yet Beware of Unpaid Balances Increasing.

In a forbearance program, a lender agrees not to foreclose on a property and gives the borrower several months’ grace.

A reprieve for unemployed borrowers
Fannie Mae and Freddie Mac recently extended their foreclosure forbearance programs to give short-term aid to unemployed homeowners, but housing counselors warn that these borrowers will need to look at longer-term solutions.

Making sense of the story

  • In a forbearance program, a lender agrees not to foreclose on a property and gives the borrower several months’ grace from or reduction in monthly mortgage payments.  The programs work best for temporary setbacks, like job loss, health problems, or natural disasters.
  • There are drawbacks to the forbearances though. The most-significant drawback is a larger total debt from the smaller payments.  The unpaid balance continues to increase during this time.
  • The new temporary mortgage payment is often set to 31 percent of the household income; in some cases lenders agree to accept no payments.  Fannie Mae’s extended unemployment program, first offered in the fall of 2010, limits any nonpayment or other forbearance plans to one year, with the second six months requiring approval by both Fannie Mae and the lender.
  • However, even with the program in place, the lender could still report a mortgage as delinquent, which could adversely affect the borrower’s credit score.
  • Because some agreements add onerous term and conditions, homeowners should also consult with a housing counselor certified by the Dept. of Housing and Urban Development.

Read the full story

Fannie Mae and Freddie Mac Offer A Reprieve for Unemployed Borrowers Yet Beware of Unpaid Balances Increasing.

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December 2011 Existing-Home Sales Show Uptrend

Posted on January 22nd, 2012 by Carlo Capomazza

rearviewMirror.index 2 December 2011 Existing Home Sales Show Uptrend

Don't wait until the bottom of the market is in your rearview mirror.

WASHINGTON (January 20, 2012) – Existing-home sales continued on an uptrend in December, rising for three consecutive months and remaining above a year ago, according to the National Association of Realtors®.

The latest monthly data shows total existing-home sales1 rose 5.0 percent to a seasonally adjusted annual rate of 4.61 million in December from a downwardly revised 4.39 million in November, and are 3.6 percent higher than the 4.45 million-unit level in December 2010.  The estimates are based on completed transactions from multiple listing services that include single-family homes, townhomes, condominiums and co-ops.

Lawrence Yun, NAR chief economist, said these are early signs of what may be a sustained recovery.  “The pattern of home sales in recent months demonstrates a market in recovery,” he said.  “Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market.”

For all of 2011, existing-home sales rose 1.7 percent to 4.26 million from 4.19 million in 2010.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to another record low of 3.96 percent in December from 3.99 percent in November; the rate was 4.71 percent in December 2010; recordkeeping began in 1971.

NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said more buyers are expected to take advantage of market conditions this year.  “The American dream of homeownership is alive and well.  We have a large pent-up demand, and household formation is likely to return to normal as the job market steadily improves,” he said.  “More buyers coming into the market mean additional benefits for the overall economy.  When people buy homes, they stimulate a lot of related goods and services.”

Total housing inventory at the end of December dropped 9.2 percent to 2.38 million existing homes available for sale, which represents a 6.2-month supply2 at the current sales pace, down from a 7.2-month supply in November. 

Available inventory has trended down since setting a record of 4.04 million in July 2007, and is at the lowest level since March 2005 when there were 2.30 million homes on the market.

“The inventory supply suggests many markets will see prices stabilize or grow moderately in the near future,” Yun said.

Foreclosures3 sold for an average discount of 22 percent in December, up from 20 percent a year ago, while short sales closed 13 percent below market value compared with a 16 percent discount in December 2010.

The national median existing-home price4 for all housing types was $164,500 in December, which is 2.5 percent below December 2010.  Distressed homes – foreclosures and short sales – accounted for 32 percent of sales in December (19 percent were foreclosures and 13 percent were short sales), up from 29 percent in November; they were 36 percent in December 2010.

All-cash sales accounted for 31 percent of purchases in December, up from 28 percent in November and 29 percent in December 2010.  Investors account for the bulk of cash transactions.

Investors purchased 21 percent of homes in December, up from 19 percent in November and 20 percent in December 2010.  First-time buyers fell to 31 percent of transactions in December from 35 percent in November; they were 33 percent in December 2010.

Contract failures were reported by 33 percent of NAR members in December, unchanged from November; they were 9 percent in December 2010.  Although closed sales are holding up better than this finding would suggest, contract cancellations are caused largely by declined mortgage applications and failures in loan underwriting from appraised values coming in below the negotiated price.

Single-family home sales increased 4.6 percent to a seasonally adjusted annual rate of 4.11 million in December from 3.93 million in November, and are 4.3 percent higher than the 3.94 million-unit pace a year ago.  The median existing single-family home price was $165,100 in December, which is 2.5 percent below December 2010.

Existing condominium and co-op sales rose 8.7 percent to a seasonally adjusted annual rate of 500,000 in December from 460,000 in November but are 2.0 percent below the 510,000-unit level in December 2010.  The median existing condo price was $160,000 in December, down 3.0 percent from a year ago.

Regionally, existing-home sales in the Northeast jumped 10.7 percent to an annual pace of 620,000 in December and are 3.3 percent above a year ago.  The median price in the Northeast was $231,300, which is 2.7 percent below December 2010.

Existing-home sales in the Midwest rose 8.3 percent in December to a level of 1.04 million and are 9.5 percent above December 2010.  The median price in the Midwest was $129,100, down 7.9 percent from a year ago.

In the South, existing-home sales increased 2.9 percent to an annual level of 1.76 million in December and are 3.5 percent above a year ago.  The median price in the South was $146,900, down 1.1 percent from December 2010.

Existing-home sales in the West rose 2.6 percent to an annual pace of 1.19 million in December but are 0.8 percent below December 2010.  The median price in the West was $205,200, up 0.3 percent from a year ago.

The National Association of Realtors® (NAR), “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industry.

Download the relevant NAR® reports and statistical data from the links below.

RELCD RELEHS RELSF RELTS

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December 2011 Existing Home Sales Show Uptrend

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4 of US’s 10 Richest Zips of 2011 are in CA: Santa Monica’s 90402, Los Alto’s 94022, LA’s 90077, Portola Valley’s 94028, & BH’s 90210

Posted on January 9th, 2012 by Carlo Capomazza

That’s right: 4 of America’s 10 Richest Zips of 2011 are in California: No.10: Santa Monica’s 90402, No. 9: Los Alto’s 94022, No. 6 Los Angeles’ 90077, No. 5 Portola Valley’s 94028, No. 4 Beverly Hills’s 90210. Not a big surprise since key developments in the early 20th century included the emergence of Los Angeles as the center of the American entertainment industry, and the growth of a large, state-wide tourism sector. The late 20th century saw the development of the technology and information sectors, punctuated by the growth of Silicon Valley. In addition to California’s prosperous agricultural industry, other important contributors to its economy include aerospace, education, and manufacturing. If California were a country, it would be the eighth-largest economy in the world and the 35th most populous nation. At least half of the fresh fruit produced in the United States are cultivated in California, and it also leads in the production of vegetables.

Easy to see why these zips were pushed into Bloomberg’s top 10 Richest Zips.

Amusing to think, where will you likely find yourself the poorest person in town? There are places where even a well-to-do household, by normal standards, would have a hard time keeping up with the Joneses.

To identify the 50 richest areas in the U.S. for Businessweek.com, Little Rock data company Gadberry Group looked at all Zip Codes in the U.S. with more than 100 households and ranked them by the average income and net worth of their households. The area’s population change since 2000 was also taken into consideration, though only as a minor factor, and no areas with a decrease in number of households, where wealth might become less concentrated, were included. The results include many places around New York, Washington, D.C., and Silicon Valley.

As Gadberry’s survey mainly captured data on primary residences, many affluent second-home markets, such as the Hamptons on Long Island and Aspen, Colo., did not make the top 50. Also, neighborhoods in such urban areas as Manhattan and San Francisco that have pockets of extreme wealth did not make the list because they have a greater diversity of income earners.

10 santa monica ca2 300x183 4 of USs 10 Richest Zips of 2011 are in CA: Santa Monicas 90402, Los Altos 94022, LAs 90077, Portola Valleys 94028, & BHs 90210

The Condos along Ocean Blvd. overlooking the Pacific are very special.

No. 10 Richest Zip Code: 90402
Location: Santa Monica, Calif.
No. households: 5,452
Pct. change in no. households since 2000: 3.16
Average household income: $266,243
Average household net worth: $1,494,010

This section of Santa Monica has some of the most expensive houses in Los Angeles County. It includes the chic North of Montana neighborhood, known for palm and pine trees along its streets, attractive homes, and an excellent school system, according to real estate site northofmontana.com. The median home value in 90402 was $1,995,300 in September, Zillow.com estimates. The population is mostly elite couples and singles.

09 lostalto ca2 300x1871 4 of USs 10 Richest Zips of 2011 are in CA: Santa Monicas 90402, Los Altos 94022, LAs 90077, Portola Valleys 94028, & BHs 90210

This well appointed community is near Palo Alto and San Fransisco.

No. 9 Richest Zip Code: 94022
Location: Los Altos, Calif.
No. households: 7,103
Pct. change in no. households since 2000: 3.23
Average household income: $256,476
Average household net worth: $1,563,480

Adjacent to the No. 23 richest Zip Code, 94024, and roughly 40 miles south of San Francisco, this area includes Los Altos, Los Altos Hills, and Palo Alto Hills. Downtown Los Altos, a six-block triangle, has more than 150 shops and also hosts farmers markets and movie nights, among other community activities, says the Los Altos Village Assn. Many luxury homes in the Los Altos Hills overlook rolling hills and the South and East Bay communities. Elite couples and singles are the predominant population. Los Altos has the highest household net worth of all the Zip codes in this ranking.

06 belair ca 300x1911 4 of USs 10 Richest Zips of 2011 are in CA: Santa Monicas 90402, Los Altos 94022, LAs 90077, Portola Valleys 94028, & BHs 90210

Bel Air is adjacent to where I have lived for some 13 years.

No. 6 Richest Zip Code: 90077
Location: Los Angeles, Calif.
No. households: 3,553
Pct. change in no. households since 2000: 0.11
Average household income: $290,802
Average household net worth: $1,531,147

The 90077 Zip Code refers to the Bel Air section of Los Angeles, home to celebrities and executives. The district has many expensive residences by the Bel Air Country Club and houses with views of the surrounding valley, according to belair-realestate.com. In addition to mansions, Bel Air has ranch-style properties. It is next door to the fourth-richest Zip Code, 90210. The predominant population in this the Bel Air area is elite couples and singles.

05 portola valley ca 300x185 4 of USs 10 Richest Zips of 2011 are in CA: Santa Monicas 90402, Los Altos 94022, LAs 90077, Portola Valleys 94028, & BHs 90210

This valley was named for Spanish explorer Gaspar de Portola, who led the first party of Europeans to explore the San Francisco Peninsula, in 1769.

No. 5 Richest Zip Code: 94028
Location: Portola Valley, Calif.
No. households: 2,579
Pct. change in no. households since 2000: 3.28
Average household income: $270,922
Average household net worth: $1,531,291

This Portola Valley Zip code is adjacent to the No. 9 richest Zip Code, 94022, and the No. 32 richest, 94304. The town of Portola Valley is just west of Stanford University in a valley by the San Andreas Fault. It offers a trail system, scenic roads, open space, and natural views, according to the town. Elite couples and singles are the predominant inhabitants.

04 beverly hills ca 300x190 4 of USs 10 Richest Zips of 2011 are in CA: Santa Monicas 90402, Los Altos 94022, LAs 90077, Portola Valleys 94028, & BHs 90210

The area's "Platinum Triangle" of affluent neighborhoods is formed by the city of Beverly Hills and the Los Angeles neighborhoods of Bel Air and Holmby Hills.

No. 4 Richest Zip Code: 90210
Location: Beverly Hills, Calif.
No. households: 9,245
Pct. change in no. households since 2000: 3.71
Average household income: $278,757
Average household net worth: $1,504,166

This neighborhood near the foothills of the Santa Monica Mountains, made famous by the television series Beverly Hills, 90210, is dominated by opulent homes. Rodeo Drive, between Wilshire Boulevard and Sunset Boulevard, has an area of large houses referred to as the Flats, as well as a posh shopping district, according to Sotheby’s International Realty. Zillow.com estimates that in September, 90210′s median home value was $2,557,700. The area is adjacent to the sixth-richest Zip Code, 90077. The predominant residents of 90210 are executives and professionals in their 40s and 50s with no children.

To see the entire list go here and remember through Sotheby’s International Realty’s® extensive agent referral network I will find you a Buying or Selling agent without obstruction in Los Alto, or Portola Valley, and as I am a native to SOuthern California if you are transacting in Los Angeles, Bel Air, Beverly Hills or Santa Monica then let’s speak soon at 310.888.1881.

 

4 of USs 10 Richest Zips of 2011 are in CA: Santa Monicas 90402, Los Altos 94022, LAs 90077, Portola Valleys 94028, & BHs 90210

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Best Political Cartoons of the Week

Posted on January 6th, 2012 by Cartoon Blog

Nate Beeler / Washington Examiner (click to start slideshow)

 

Every Friday, we collect the best political cartoons of the week and stuff them into one big, glorious slideshow.

Every week I enjoy this selection of even handed satirical cartoons, time permitting and occasionally I like to share these images because they invite ice breaking conversation starters for taboo subjects. So just relax and catch up on a week's worth of news with these cartoons comprising the Best Cartoons of the Week slideshow. -Carlo

 

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Here are some New Laws that our California State Legislature has Enacted in to Law effective Jan. 1 for 2012 and on…

Posted on January 5th, 2012 by Carlo Capomazza
sharkfinforsoup 300x1933 Here are some New Laws that our California State Legislature has Enacted in to Law effective Jan. 1 for 2012 and on...

Sharks loose orientation and suffocate on the ocean floor after having their dorsal fins removed.

With 2012, new state laws notable in California kick in on everything from immigration to shark fins being allowed to be in soup. State legislatures passed close to 40,000 new laws in 2011, and a number of those measures take effect on Jan. 1. On some issues, like immigration, state laws are taking markedly different stands. And here’s what’s cooking in California.
Child Booster Seat Law
The new California Booster Seat Law outlaws parents, guardians, or drivers from transporting on a highway in a motor vehicle any child under 8 years old without securing that child in an appropriate child restraint meeting federal motor vehicle safety standards. The new California law does contain a provision, however, that a child under 8 years of age who is 4’9″ inches in height or taller may use a safety belt rather than a child safety seat or booster seat. 

Employment Credit Check Law
Employers can no longer request credit reports for Californians unless they are working or seeking work in a financial institution, law enforcement or the state Justice Department. The law also exempts anyone who:
(1) has access to people’s bank or credit card account information, SSN number and date of birth,
(2) has access to an employer’s proprietary information or trade secrets, (3) signs a check, credit card, financial contract, or transfers money for an employer,
(4) has access to more than $10,000 cash, or (5) is a manager in ‘certain industries’.

California Handgun Open Carry Law 
Open-carry citizen handgun ban.  Supported by cops who cannot tell whether openly carried weapons are loaded or not.  Violators pay $1,000 plus 6 months in jail (misdemeanor). Gun rights advocates vow to carry rifles and shotguns instead.  Californians can still get permits for concealed weapons, though it is increasingly difficult.  

California Human Trafficking Law
Enforces mandatory disclosure of efforts that companies take to eradicate slavery and human trafficking from their entire supply chains.  Being watched as a prototype of future legislation in other states and nations.  

California Gay Bullying Law (Seth’s Law)
Combats bullying of gay and lesbian students in public schools by requiring school districts to have a uniform process for dealing with gay bullying complaints. Mandates that school personnel intervene if they witness gay bullying. 

LGBT Equality and Equal Access in Higher Education Law
State universities and colleges must create and enforce campus policies protecting LGBTs from harassment and appoint employee contact persons to address on-campus LGBT matters. The law includes community colleges statewide.

Domestic Partnership Equality Law
Corrects inequalities between domestic partnerships and heterosexual marriages, including domestic partner health benefits sharing. 

Protection of Parent-Child Relationships Law
Allows courts to consider the relationship between a child and a non-biological parent when considering child rights cases involving birth parents, adoptive parents, and gay or lesbian guardians.  

Transgender Non-Discrimination Law
Provides public accommodation and protection in education, housing and employment for gender identity and expression.  

Transgender Vital Statistics Law
Makes it easier for transgender Californians to get a court petition to change their gender on official documents.  

LGBT Equal Benefits Law
Requires an employer with a state contract worth more than $100,000 to have non-discrimination policies in place for LGBT workers and their partners.  

Judicial Applicant and Appointment Demographics Inclusion Law
Includes gender identity and sexual orientation of potential judges into the state’s Judicial Applicant Data Report to ensure that state courts are diverse.

Gay Divorce Law
Provides that if a gay couple got married in California but lives in a state that won’t grant them a divorce, the California court will have jurisdiction to grant them a legal divorce. The case will be filed in the county where the gay couple got married.  

California Gay History Law
Governor Jerry Brown signed the Gay History Law, which mandates that school textbooks and social studies include gay, lesbian, bisexual and transgender accomplishments.  

Internet Sales Tax
Governor Brown signed into law that out-of-state Internet retailers must collect California sales tax on transactions if the retailer has a presence in the state. 

California Renters Right to Recycling Law
Apartment building landlords will have to start providing recycling services for 7 million California tenants.  

California Reader Privacy Law
Government and third-party snoops can no longer gather information on Internet users’ reading, book shopping or ebook using habits without a legal court order. 

Here are some New Laws that our California State Legislature has Enacted in to Law effective Jan. 1 for 2012 and on...

Filed under: Commentary, Current Events, LA Area, Politics, Relocating to LA, Tax Issues, Visiting LA, VRN | No Comments »

Reminder: In 2012, Many Tax Benefits Increase Due to Inflation Adjustments declared IRS on 10/20/11

Posted on December 29th, 2011 by Carlo Capomazza

In 2012, Many Tax Benefits Increase Due to Inflation Adjustments
 

IRSimages Reminder: In 2012, Many Tax Benefits Increase Due to Inflation Adjustments declared IRS on 10/20/11

IR-2011-104, Oct. 20, 2011

WASHINGTON — For tax year 2012, personal exemptions and standard deductions will rise and tax brackets will widen due to inflation, the Internal Revenue Service announced today.

By law, the dollar amounts for a variety of tax provisions, affecting virtually every taxpayer, must be revised each year to keep pace with inflation. New dollar amounts affecting 2012 returns, filed by most taxpayers in early 2013, include the following:

  • The value of each personal and dependent exemption, available to most taxpayers, is $3,800, up $100 from 2011.
  • The new standard deduction is $11,900 for married couples filing a joint return, up $300, $5,950 for singles and married individuals filing separately, up $150, and $8,700 for heads of household, up $200. Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.
  • Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $70,700, up from $69,000 in 2011.

Credits, deductions, and related phase outs.

  • For tax year 2012, the maximum earned income tax credit (EITC) for low- and moderate- income workers and working families rises to $5,891, up from $5,751 in 2011. The maximum income limit for the EITC rises to $50,270, up from $49,078 in 2011.The credit varies by family size, filing status and other factors, with the maximum credit going to joint filers with three or more qualifying children.
  • The foreign earned income deduction rises to $95,100, an increase of $2,200 from the maximum deduction for tax year 2011.
  • The modified adjusted gross income threshold at which the lifetime learning credit begins to phase out is $104,000 for joint filers, up from $102,000, and $52,000 for singles and heads of household, up from $51,000.
  • For 2012, annual deductible amounts for Medical Savings Accounts (MSAs) increased from the tax year 2011 amounts; please see the table below.

Medical Savings Accounts (MSAs)

Self-only coverage

Family coverage

Minimum annual deductible

$2,100

$4,200

Maximum annual deductible

$3,150

$6,300

Maximum annual out-of-pocket expenses

$4,200

$7,650

 

The $2,500 maximum deduction for interest paid on student loans begins to phase out for a married taxpayers filing a joint returns at $125,000 and phases out completely at $155,000, an increase of $5,000 from the phase out limits for tax year 2011. For single taxpayers, the phase out ranges remain at the 2011 levels.

Estate and Gift

For an estate of any decedent dying during calendar year 2012, the basic exclusion from estate tax amount is $5,120,000, up from $5,000,000 for calendar year 2011. Also, if the executor chooses to use the special use valuation method for qualified real property, the aggregate decrease in the value of the property resulting from the choice cannot exceed $1,040,000, up from $1,020,000 for 2011.

The annual exclusion for gifts remains at $13,000.

Other Items

  • The monthly limit on the value of qualified transportation benefits exclusion for qualified parking provided by an employer to its employees for 2012 rises to $240, up $10 from the limit in 2011. However, the temporary increase in the monthly limit on the value of the qualified transportation benefits exclusion for transportation in a commuter highway vehicle and transit pass provided by an employer to its employees expires and reverts to $125 for 2012.
  • Several tax benefits are unchanged in 2012. For example, the additional standard deduction for blind people and senior citizens remains $1,150 for married individuals and $1,450 for singles and heads of household.

Details on these inflation adjustments can be found in Revenue Procedure 2011-52, which will be published in Internal Revenue Bulletin 2011-45 on November 7, 2011.

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Page Last Reviewed or Updated: October 20, 2011

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Reminder: In 2012, Many Tax Benefits Increase Due to Inflation Adjustments declared IRS on 10/20/11

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‘Buy real estate in Italy and you won’t lose your money’ isn’t the most captivating title but High End Italian realty is fairly stable.

Posted on December 22nd, 2011 by Carlo Capomazza

Once Rome like much of Italy's urban places was covered in a coral reef of layer upon layer of political and advertising posters doused with graffiti then tossed with auto exhaust. The exhaust, and much of the aforementioned has cleared revealing a wonderful curb appeal and during a Buyer's market no less! And so I thought it worth doing some research into the Italian luxury property market particularly as the technocrats prepare their impending austerity measures to make the Italian economic situation more solid and therefore Italian real estate more desirable. For now though, Italy's top end, luxury property market may have hit or be in its bottom trough, yet the deals are not what a Buyer might expect. Here's why...

According a FIAIP market report for residential property bought for holiday use in Italy, values rose for top-end holiday properties by between 9 and 27% between '04 and '09. 'Well,' you may say, 'what about just 2008?' The same kind of properties fell by only -0.6%, this in a year when many property markets went South. The first half of 2009 saw a drop of between 0.85% to 1.25%, again for the same kind of property, that is quality residential property for holiday use. The conclusion would seem to be that if this market can prove so robust during one of the worst economic downturns in living memory then it is a resilient market indeed.

Looking at FIMAA's study of annual variations in prices for holiday homes in all regions of Italy published in August '09, in some regions prices rose so slightly (+0.1% to 0.3%), others remained stationary and the ones where prices fell were in the region of maximum 1.1%. To back this up further, recent activity during the Euro crisis has shown that people are choosing to buy in Italy, even at the top end of the market, putting their capital in bricks and mortar.

Nomisma, a well-respected research institute, reported on the Italian property market at the end of 2009, indicating that March-April saw the market hit bottom, and that while sales volumes were still low (down 15% compared to 2008), things were ever so slightly improving. Overall, prices for residential property fell by 1.6% in the last six months of 2009, which for the year was placed at -4.1%, contrast that with -30% for the US and UK in the same period.

So as in most transactions, you really won't know what the floor or lowest price of the deal is, unless offering a lower number than anyone might expect but of no less than 10-15% off the asking price, lest your Buying agent get no return phone call. And mind you, working with a Buying agent will undoubtedly get you closer to having that call returned because local buying agents generally know local flexibilities in price.

So if seeking deals on quality homes in areas like Tuscany, Venice, and the northern lakes a Buyer won't see a wholesale collapse in price to take advantage of  because Italian owners still view brick and mortar as a sound place to leave your money and therefore are more likely to sooner withdraw their property from the market than letting it go for 15 to 20% off. So at best, Buyers can only hope for slightly more leverage on discounts once negotiations begin! Again, the typical Italian Seller, unless they are a distressed Seller, will prefer to wait than slash prices.

Ask me for a fellow Sotheby's International Realty® agent in Italy today. Offer away!

For a list of Italian properties for sale with Sotheby's click here.

Thanks to Paul Hudson, a property buying agent for much of the info used in writing this post.

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Home prices may be more stable than we think

Posted on December 11th, 2011 by Carlo Capomazza

We all know they story of "Peter and the Wolf" or the boy who cried wolf—if one hears something over and again, despite how urgent it might be, it loses its impact the more you hear it.

This is the situation with the mortgage & real estate markets lately. As money changes hands more transactions are likely to occur. How many different times has the media reported that mortgage rates reached new lows? How many times have you heard that home prices have finally hit bottom?

After a while, it’s easy to lose sight of how significant certain movements of these two indicators actually are. One analyst has come out and said exactly that. When it comes to home prices, people aren’t paying enough attention to their recent improvements, said Barclays analyst Stephen Kim.

Non-distressed home prices improving

“In the absence of a government homebuyer incentive, prices for non-distressed home sales have stabilized for almost a year!” said Kim in a recent note to investors. “In our opinion, this is the most important trend in the housing industry right now, and we are amazed at how little attention it has been getting from the media and the Street. Meanwhile, we point out that this stability on the part of non-distressed prices has occurred despite a very high share of distressed activity and continued declines in overall prices.”

Kim’s point is this: Sure, distressed properties weighed down overall measures of home prices, but when you examine non-distressed prices on their own, the data reveals that we may have hit bottom and things may be well on their way to improving, especially as we move into next year.

At least this another indication that things are moving in the right direction.

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