Here is an article that might be of interest to buyers and investor clients
Daily Real Estate News March 30, 2007Study: U.S. Prices Return to Normal“A market returning to normal” is the way Global Insight, a privately held global information company, describes the current housing market, based on the most recent U.S. Housing Valuation Analysis. The Housing Valuation Analysis — a joint effort by Global Insight and National City Corp. — examines the top 317 U.S. real estate markets using data from the Office of Federal Housing Enterprise Oversight. Taking into consideration differences in population density, household incomes, and interest rates, the analysis determines what home prices should be and how much current prices deviate from that norm. A Closer Look“Nearly all markets posted a decline in the level of overvaluation, which signals that the overall housing market is beginning to trend back to more normal price growth,” says Jeannine Cataldi, senior economist and manager of Global Insights Real Estate Service.The number of markets identified as overvalued decreased to 57 from 60 metro markets in the fourth quarter of 2006. Texas had the highest concentration of undervalued markets with Dallas and College Station-Bryan tying for lowest in the nation. Although the greatest incidence of overvaluation remains in pockets along the Atlantic and Pacific coasts, corrections are under way in some markets as prices and appreciation rates decline. Approximately 15 percent of the nation’s single-family housing stock experienced price declines in the fourth quarter. The report finds that New England no longer appears to be “significantly overvalued,” while Orange County, Calif., Tucson, Ariz., Reno and Carson City, N.V., and Kingston, N.Y., fell below the “threshold denoting extreme overvaluation.” Even though these markets are still considered “significantly overvalued,” the report points out that slowing rates of appreciation reflect “a gradual movement toward historical price trends.” Nationally, according to OFHEO data, prices advanced by 1.8 percent — metrics the report says are more upbeat than those reported by the Commerce Department, which showed an increase of 1.6 percent in median transaction prices. It's also more than the NATIONAL ASSOCIATION OF REALTORS®, which showed a decrease in median prices of 2.8 percent. "Median transaction prices tend to overstate price strength during buoyant markets and understate price strength during soft markets,” according to the OFHEO. — By Camilla McLaughlin for REALTOR® Magazine Online

The Secret is out and making the rounds not only on "Oprah" and "Larry King Live" but in the lives of many people who live in the Bay area as well.
A Friend of ours who had been diagnosed with a life threatening disease has changed her attitude from a place of doom to one of gratitude and now is training to run in a marathon.
Another friend of ours fell in love with Maine and now is on a pursuit to purchase an old farmhouse and restore it as a retreat for artists.
It is amazing how much your attitude towards anything in life can cause your own reality to be positive or negative.
Dave and I are focusing on what is positive in our lives, our health, healthy children,this beautiful winter weather and happiness. We feel really grateful for the many wonderful friends and positive experiences that surround us.
If you haven't watched the "Secret" you should check it out at www.TheSecret.net It cost $5.00 to watch but provides a wealth of knowledge.

SOLDThis sweet Berkeley homes offers a three bedroom, one bath layout with warm hardwood oak floors through-out the cheerful living and dining rooms. The kitchen has an attached laundry room and features many upgraded appliances and plenty of cabinet space as well as a side exit out to the right of the house. The back bedroom which is considered the master has wonderful doors that walk out on to a large exotic hardwood deck with its own sunken hot tub, perfect for use year around with Berkeley’s mild climate. The lower portion of the house can be accessed from an exterior side door where you will find a cement floor and room for lots of storage. A large portion of the foundation on this home has been replaced and you can see the quality craftsmanship that went into the job when underneath the home. Also below is a top of the line On Demand Hot Water System, which will virtually allow you an endless supply of hot water and a newer high efficiency Bryant forced air gas heating system. The lot this home sits on is well over 5000 square feet and shows via the enormous grassy back yard. Fenced in and private, this yard is ideal for most every homeowners needs with automatic sprinklers and fabulous plants such as Meyer Lemon & Kefir Lime trees as well as rose bushes, Jasmine plants, Morning Glories and more. Also located in the back is a large, detached two car garage. Currently being used for storage, this garage could be used for cars by simply altering the fence configuration leading back across the driveway. Located just blocks from many different Berkeley shops and restaurants including Berkeley’s renowned 4th Street area this home speaks the words of opportunity! Take a Virtual Tour!

This Beautiful Property is now pending!
This Rare Corner Unit in the Sierra features walls of glass surrounding two sides of the main living area. Dramatic 18 foot ceilings, open kitchen – entertainment area, in-unit laundry with top of the line Bosch Washer & Dryer, upper plus room overlooking the living area, hardwood floors, stainless steel appliances, granite countertops in the kitchen and limestone vanities in both bathrooms. Additionally, you have a lower patio off the entrance and an upper deck of your master suite. Truly a must see! The Sierra offers a chic two-story lobby and the buildings third floor offers an outdoor heated pool, sauna and sundeck as well as a media room w/flat screen TV and pool table. Fitness center and cardio theater, business center, conference rooms and library are also part of the buildings top rated amenities. Take the video tour! Get all the other details!

And a ruling by the IRS in late 2002 could put more dollars in homeowners' pockets when they must sell before they qualify for the full tax break. The Treasury has defined the unforeseen circumstances that often force homeowners to sell and under which they now can get some tax relief. They include:
Death,
Divorce or legal separation,
Job loss that qualifies for unemployment compensation,
Employment changes that make it difficult for the homeowner to meet mortgage and basic living expenses, and
Multiple births from the same pregnancy.
A partial exclusion can be claimed if the sale was prompted by residential damage from a natural or man-made disaster or the property was "involuntarily converted," for example, taken by a local government under eminent domain law.
What's not deductibleWhile many tax breaks are available to a homeowner, don't get too carried away. There are still a few things for which you have to bear the full cost.
One such expense is insurance. If you pay private mortgage insurance because you weren't able to come up with a large enough down payment, that's a cost you can't write off at tax time. Neither can you deduct your property insurance premiums, even though the coverage generally is required as part of the home loan and is included as a portion of your monthly payment.
Other nondeductible residential expenses include homeowner association dues, any additional principal payments you make, depreciation of your home, general closing costs and local assessments to increase the value of your neighborhood, such as construction of new sidewalks or utility connections.
What about all those repairs that seem to crop up the day after you move in? Surely they're tax deductible. Sorry. While they'll make your house much more comfortable, you're on your own here, too.
But hold onto the receipts. In today's hot real estate market, some homeowners may find their property will appreciate beyond the $250,000 ($500,000 for married couples) amount the IRS will let you keep tax free when you sell. If that happens, the records of property improvements could help you establish a higher basis for your house and reduce your taxable profit.
Bankrate.com's corrections policy
-- Updated: Dec. 6, 2006

And points paid on a loan secured by a second home or vacation residence, regardless of how the cash is used, must be amortized over the life of the loan.
TaxesThe other major deduction in connection with your home is property taxes.
A big part of most monthly loan payments is taxes, which go into an escrow account for payment once a year. This amount should be included on the annual statement you get from your lender, along with your loan interest information. These taxes will be an annual deduction as long as you own your home.
But if this is your first tax year in your house, dig out the settlement sheet you got at closing to find additional tax payment data. When the property was transferred from the seller to you, the year's tax payments were divided so that each of you paid the taxes for that portion of the tax year during which you owned the home. Your share of these taxes is fully deductible.
A word of caution: If your settlement statement shows any money you paid into an escrow account for future taxes, this amount is not deductible. You can only deduct the taxes in the year your lender actually pays them to the property tax collector.
For example, you bought your house on July 1. Your property taxes are due each Jan. 1. When you closed, the seller had already paid the year's taxes of $1,000 in full so you reimburse the seller half of his annual tax payment to cover your ownership of the property for the last six months of the year. Your $500 reimbursement to the seller is shown on your settlement documents.
The closing document also shows you pre-paid another $500 to the lender as escrow for the coming year's taxes due next Jan. 1. The $500 you reimbursed the seller at closing is deductible on this year's tax return, but the $500 held in escrow is not deductible until it is paid the next year.
When you sellWhen you decide to move up to a bigger home, you'll be able to avoid some taxes on the profit you make.
Years ago, to avoid paying tax on the sale of a residence a homeowner had to use the sale proceeds to buy another house. In 1997, the law was changed so that up to $250,000 in sales gain ($500,000 for married joint filers) is tax free as long as the homeowner owned the property for two years and lived in it for two of the five years before the sale.
If you sell before meeting the ownership and residency requirements, you owe tax on any profit. The IRS provides some tax relief if the sale is because of a change in the owner's health, employment or unforeseen circumstances. In these cases, the tax-free gain amount is prorated.

However, you're not going to get to deduct all that interest. Instead, your deduction is limited to interest on just $15,000 of the loan; that's the amount your home's value exceeds your first mortgage. Interest payments on the other $27,500 are not deductible, even though the equity line is secured by your home. So don't automatically assume you can deduct all interest on home equity debts.
What if your real estate circumstances are a bit brighter? Say, for instance, you're able to swing a vacation home on the lake. You're in tax luck. Mortgage interest on second homes is fully deductible. In fact, your additional property doesn't have to strictly be a house. It could be a boat or RV, as long as it has cooking, sleeping and bathroom facilities. You can even rent out your second property for part of the year and still take full advantage of the mortgage interest deduction as long as you also spend some time there.
But be careful. If you don't vacation at least 14 days at your second property, or more than 10 percent of the number of days that you do rent it out (whichever is longer), the IRS could consider the place a residential rental property and axe your interest deduction.
PointsDid you pay points to get a better rate on any of your various home loans? They offer a tax break, too. The only issue is exactly when you get to claim it.
The IRS lets you deduct points in the year you paid them if, among other things, the loan is to purchase or build your main home, payment of points is an established business practice in your area and the points were within the usual range. Make sure your loan meets all the qualification requirements so that you can deduct points all at once.
A homeowner who pays points on a refinanced loan also is eligible for this tax break, but in most cases the points must be deducted over the life of the loan. So if you paid $2,000 in points to refinance your mortgage for 30 years, you can deduct $5.56 per monthly payment, or a total of $66.72 if you made 12 payments in one year on the new loan.
But if the refinancing frees up cash you then use to improve your house, you can fully deduct points on that money in the year you paid the points. The same rule applies to home equity loans or lines of credit. When the loan money is used for work on the house securing the loan, the points are deductible in the year the loan is taken out. If you use the extra cash for something else, such as buying a car, you still can deduct the points but not completely on one tax return. The points deductions must be parceled out over the equity loan's term.
Remember: It's only the portion of the points related to refi money you used for home improvement that is eligible for immediate tax-deduction purposes. The points attributable to the refinanced existing mortgage balance still must be amortized over the life of the refinanced loan.

There are many benefits to Homeownership and many tax benefits you can take advantage of as well.
Here is part 1 of a 4 part Article on Homeownership tax advantages:

Home sweet homeownership tax breaks
By Kay Bell • Bankrate.com


Congratulations, you've just taken another step up the American-dream ladder and are a homeowner. Along with the joy of painting, plumbing and yard work, you now have some new tax considerations.
The good news is that you can deduct many home-related expenses. These tax breaks are available for any abode -- mobile home, single-family residence, townhouse, condominium or cooperative apartment.
The bad news is that to take full tax advantage of your home, your taxes will likely get more complicated. You're not living on "EZ" Street anymore; you've moved to the 1040 long form and Schedule A, where you'll have to itemize deductions.
For many homeowners, the effort of itemizing is well worth it at tax time. Some, however, might find that claiming the standard deduction remains their best move. How do you decide? First, find your standard deduction amount, based on your filing status: $5,150 for single or married filing separately taxpayers; $7,550 for heads of households; and $10,300 for married couples who file joint returns. Then compare it to the total expenses you can itemize and file using the method that gives you the larger deduction.
To help you figure your possible Schedule A tax breaks, here's a look at homeowner expenses you can deduct, ones you can't and some tips to get the most tax advantages out of your new property owning status.
Mortgage interestYour biggest tax break is reflected in the house payment you make each month since, for most homeowners, the bulk of that check goes toward interest. And all that interest is deductible, unless your loan is more than $1 million. If you're the proud owner of a multimillion-dollar mortgaged mansion, the Internal Revenue Service will limit your deductible interest.
Interest tax breaks don't end with your home's first mortgage. Did you take advantage of low rates and your real estate's growing value to pull out extra cash through refinancing? Or did you decide instead to get a home equity loan or line of credit? Either way, that interest also is deductible, again within IRS guidelines.
Generally, equity debts of $100,000 or less are fully deductible. But even then, the remaining amount of your first mortgage could restrict your tax break. This could be a concern if you excessively leverage your house.
When a homeowner takes out an equity loan that, when combined with his first mortgage amount, increases the debt on the house to an amount more than the property's actual value, the homeowner faces additional deductibility limits. In these cases, the IRS says you can deduct the smaller of interest on a $100,000 loan or your home's value less the amount of your existing mortgage.
For example, you bought your home three years ago with a minimal down payment. Your mortgage balance is $95,000 and the house is now worth $110,000. Your bank says you qualify for a 125 percent loan-to-value equity line, or $42,500 ($110,000 x 125 percent = $137,000 - $95,000 left on your first mortgage). To pay for your daughter's college tuition and buy her a car to get to school, you take the bank up on the offer, thinking the interest deduction on the loan would be icing on the tax-break cake.

How much of a Mortgage can you Afford?
Here is a helpful article we found on calculating how much of a mortgage you can afford.
Step One - Calculating Your Monthly Income
When a loan officer prequalifies you, he works backwards to figure your maximum mortgage amount. You can do the same thing. The first step is to determine your monthly income. It isn't quite as easy as it sounds. Lenders only count income they can document through paperwork.
If you are a salaried employee, and don't earn bonuses, it's easy. Get out your paycheck. If you get paid twice a month, multiply by two. If you are paid every two weeks, then you multiply by 26 (the number of pay periods in a year) and divide by twelve. Unless you're a teacher. Teachers don't always work year round and they have special rules.
If you are an hourly employee who works a straight forty hours a week and don't earn overtime income, then it's easy, too. Look at your paycheck, multiply your hourly rate by 40, multiply that total by 52, then divide by twelve.
If you earn overtime, bonuses, or commissions -- it isn't as easy. Lenders don't give you credit for what you are currently earning. They average your income from those sources over the last two years, then add that to your regular salary or hourly monthly income. If you want a shortcut that is usually close, get out your W2 forms for the last two years. Add them together and divide by twenty-four. That is your monthly income.
If you are a teacher, a nurse, a seasonal employee, in construction, or earn only part-time income -- you can use that shortcut, too. Add the figures from your last two years W2's, then divide by 24. It generally gets you close.
If you are self-employed or receive 1099 income, then you need a two-year track record. Lenders go by what you declare to the IRS as income, since that is documentable. Since some self-employed people overstate their expenses, this may understate your income. Look at the Schedule C of your tax returns for the last two years and the number at the bottom that says "profit" is your annual income. You can add any depreciation to that figure. Add them together and divide by twenty-four.
There are variations and exceptions (like those who own their own corporations) but the above should cover most people.
copyright 2000 by Terry Light and RealEstate ABC, modified 2002

Mortgage Rates are lower than last year at this time.

Freddie Mac reported that 30-year fixed-rate mortgages averaged 6.14 percent last week unchanged from the previous week. A year ago rates on 30-year mortgages were at 6.34 percent.
The economy added 97,000 jobs in February but retail sales were sluggish with only a .1percent growth.
The lower rates are thought to have spurred on more buyers to enter back into the real estate market.

We have some exciting news to share with our readers.... Ok, no we are not expecting another baby... Yet??

But.... Last year we were ranked #3 in production for Keller Williams Realty in the California and Hawaii District. What an honor. Thanks again to our clients for all the referrals.

Also, we were recently asked to participate in a senior agent panel for the Woman's Community of Realtors. Our participation was to help new real estate agents better understand the business and what it takes to be succesful as real estate agents.
It was an honor to participate on the panel.

Hope everyone is getting outside and enjoying this beautiful weather....
Until next post!

Mark your calendars for the Crocker Highlands Home Tour Scheduled for Sunday October 7th. This will give you the chance to view some of the unique and beautiful homes in one of Oakland's Oldest and Grandest neighborhoods. Stay tuned for more details about this event!

PENDING!!! 2229 10th Street, Berkeley, CA 94710

This sweet Berkeley homes offers a three bedroom, one bath layout with warm hardwood oak floors through-out the cheerful living and dining rooms. The kitchen has an attached laundry room and features many upgraded appliances and plenty of cabinet space as well as a side exit out to the right of the house. The back bedroom which is considered the master has wonderful doors that walk out on to a large exotic hardwood deck with its own sunken hot tub, perfect for use year around with Berkeley’s mild climate. The lower portion of the house can be accessed from an exterior side door where you will find a cement floor and room for lots of storage. A large portion of the foundation on this home has been replaced and you can see the quality craftsmanship that went into the job when underneath the home. Also below is a top of the line On Demand Hot Water System, which will virtually allow you an endless supply of hot water and a newer high efficiency Bryant forced air gas heating system. The lot this home sits on is well over 5000 square feet and shows via the enormous grassy back yard. Fenced in and private, this yard is ideal for most every homeowners needs with automatic sprinklers and fabulous plants such as Meyer Lemon & Kefir Lime trees as well as rose bushes, Jasmine plants, Morning Glories and more. Also located in the back is a large, detached two car garage. Currently being used for storage, this garage could be used for cars by simply altering the fence configuration leading back across the driveway. Located just blocks from many different Berkeley shops and restaurants including Berkeley’s renowned 4th Street area this home speaks the words of opportunity! Take a Virtual Tour!
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