Judy and I went to Dutch Flat in Placer County this Fourth of July to watch their annual parade. The town is small, population about 160, although on the 4th I’m sure the population was well over 800 people. Their one hotel was closed and I asked if there were any restaurants in town and the answer was no. Since we had decided to wait and eat when we got to Dutch Flat, that was disappointing. However, the weather was perfect, not too hot for a Fourth of July day.
We picked a great spot to watch, since there was a group of children there with water hoses, water guns and anything else that could squirt water. They met their match several times, since there was quite a few fire trucks with hoses that turned the tide on the kids.
Since the parade wasn’t that long, they want around twice to make up for it. Yep, around the town a couple of times.
dutch-flat-hotel
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In front of the Dutch Flat Hotel, waiting for the parade to start
A big drop in inventories of for-sale homes across the nation has led to a buying frenzy in some sought-after neighborhoods, real estate professionals report. A gradual gain in home prices is also following suit, they say.
Last week, the National Association of REALTORS® reported an increase in pending home sales in every region in the country. The number of contracts signed in May for existing homes jumped 13 percent from a year ago, according to NAR.
NAR projects a 3 percent nationwide rise in existing-home prices this year and a 5.7 percent rise next year.
But more buyers are being met with a shrinking supply of homes on the market. New construction has slowed dramatically—to record lows—the last few years. A backlog of distressed homes have not yet hit the market. And many home owners are waiting to list their homes for sale until prices rise more.
“In the Atlanta area, we are 40 percent below where inventory was this time last year,” Debra Bradley, managing broker for Coldwell Banker Residential Brokerage in Buckhead, Ga., told Forbes.com “Generally inventory goes up this time of year, not down.”
Inventories of for-sale homes appear to be lowest for less expensive properties, at which investors and first-time home buyers often buy, real estate professionals report.
“It’s different today for a buyer being in the market,” says Rick Davidson, Century 21 Real Estate chief executive. “They might not find that deal of the century that they may have expected to find.”
Several housing markets are now reporting multiple offers and bidding wars surfacing, due to the lack of inventory in some markets.
“Most houses below $250,000 priced realistically are attracting large numbers of offers in a short time, and many exceed the asking price,” says Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business.
Industry insiders appear less concerned about the shadow inventory of distressed homes that have yet to hit the market.
“It’s not being let out to the market in bulk,” Beth Butler, president of ONE Sotheby’s International Realty in Miami, told Forbes.com. “It’s coming slowly and it’s not seriously impacting the market one way or the other. Truth be told we could use the inventory!”
On Wednesday, a so-called “Homeowner Bill of Rights” moved a step closer to passing, with housing advocates claiming the bill would help people stave off foreclosures. The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) opposes provisions in this measure which will allow anyone to stop the foreclosure process by filing a lawsuit, merited or not.
C.A.R. agrees that careful and balanced reforms to the foreclosure process are necessary. However, C.A.R. opposes AB 278 because it will further delay the housing recovery by inviting bad-faith lawsuits and defaults, making it difficult for even well-qualified borrowers to obtain financing.
The legislation would ban the practice of dual-tracking, in which a bank continues foreclosure proceedings while a homeowner is seeking a loan modification; require banks to provide a single of point – either a person or a team – for struggling borrowers; and give borrowers the right to sue their lenders for “significant, material” violations of the new law.
The bills also require lenders to give a clean explanation when they reject borrowers for a loan modification, to verify mortgage documents before a foreclosure, and to provide copies to borrowers upon request. Lenders can be fined up to $7,500 per loan for filing and recording unverified documents. The bills’ provisions apply to first-lien mortgages for owner-occupants.
For more information about C.A.R.’s opposition to AB 278 and to learn how to take action, visit this website
The earliest settlement in Nevada County was made in the summer of 1848 at a place called Rose’s Corral which was located between the Anthony House and Bridgeport. Early in the spring of 1849 a group of mountaineers from Oregon known as the Greenwood Company mined for gold at Illinois Bar on the South Yuba River. They were followed by emigrants from Indiana. In the fall of 1849, the Greenwood Company made winter camp at Jefferson, and the Indiana group moved further upstream to Washington. In that same autumn that Captain John Pennington’s party struck rich diggings on Deer Creek and built the first cabin on Gold Run, the site that was to become Nevada City.
Originally a mining camp founded along Deer Creek in 1849, Nevada City rapidly became the largest and wealthiest mining town in California. At one point, Nevada City was the third largest city in California with a population of 10,000. Nevada City’s good fortune allowed miners and settlers to enjoy plush gambling establishments, hotels, saloons, and stores. However, like many big cities that sprang up quickly during the rush for instant wealth, early Nevada City shared a darker side of claim jumping, murder, brothels and opium dens.
By the 1850’s Nevada City’s wealth began to wane, and as miners moved on in search of new claims and stories of gold and riches, a quiet and quaint city emerged. Two fires in 1856 and 1863 raced through Nevada City almost completely wiping out the town. The beautiful architecture that stands today is testament to the will of the people of Nevada City who rebuilt the town completely not once, but twice.
Hydraulic mining, Nevada County, CA, 1866 Photo courtesy of http://www.lawyersgunsmoneyblog.com
Nevada County was created in 1851 from parts of Yuba County because of the increase in population in the area and the distance to travel to courts which made it necessary to create a new county. The county was named after the mining town of Nevada City, a name derived from the term “Sierra Nevada.” The word nevada in Spanish means “snowy” or “snow-covered.” Nevada City has carried many monikers through its history; Caldwell’s Upper Store, Coyoteville, and Deer Creek Dry Diggings, but Nevada was chosen in the 1850s to give the town a cultured name.
Nevada City, CA, USA (Photo credit: Wikipedia)
In 1851 the newly formed Nevada County copied the name. The State of Nevada used the name 10 years later in 1861. The region came to life in the gold rush of 1849. Many historical sites remain to mark the birth of this important region in California’s formative years. Among them are the Nevada Theater in Nevada City, which operates to this day and once hosted Mark Twain among other historical figures. The gold industry in Nevada County thrived into the post WWII days.
The county had many firsts and historic technological moments. The first long-distance telephone in the world, built in 1877 by the Ridge Telephone Company, connected French Corral with French Lake, 58 miles (93 km) away. It was operated by the Milton Mining Company from a building on this site that had been erected about 1853. The Pelton wheel, designed to power gold mines, still drives hydro-electric generators today. Nevada City and Grass Valley were among the first California towns with electric lights.
Commemorating World’s First Long-Distance Telephone Line. Monument located in French Corral, California. Picture courtesy of http://www.noehill.com
The Olympics, NASA, and virtually every television station around the country utilizes video/broadcasting equipment designed and manufactured by Grass Valley Group, founded in Grass Valley. Electronic medical dosing equipment was first developed and manufactured in Nevada County. The first commercially viable picture-phone was developed in Nevada City. More than fifty high tech and applied tech companies, and more than one thousand hardware and software design and development professionals.
Judy J. Pinegar is a writer and her articles have appeared in many publications.
For all your real estate needs
Email or call today:
John J. O’Dell Realtor® GRI
Civil Engineer
General Contractor
(530) 263-1091
Email jodell@nevadacounty.com
Mortgage rates continue to set new record lows, leaving many home buyers and re-financers wondering how low rates can go and how to capture the best rates now.
Many economists are forecasting that mortgage rates will rise again later this year as the American economy gradually improves and as more global investors turn to the U.S. as a safe haven for money.
The average rate on a 30-year fixed-rate mortgage averaged 3.71 percent the week of June 14.
The rate had averaged 3.9 percent three months earlier and 4.5 percent a year earlier.
According to one economist, rates could possibly fall further, perhaps as much as a quarter of a percentage point, but it is more likely that they would start a “slow drift” upward.
Those planning to refinance or buy a home in the next two or three months might want to consider locking in a mortgage rate now.
Borrowers with rate locks, with a built-in deadline, often receive priority treatment from lenders, because the borrower is telling the lender that he or she is serious about closing soon.
Lock-in costs and policies vary widely, and are based partly on the time frame the borrower wants covered. Most borrowers will need a 60- to 90-day lock.
If interest rates continue to fall during the lock period, borrowers can ask the lender to rewrite the rate lock at an additional cost, or obtain a “float-down” provision in the original agreement. A lock with a float-down agreement allows the borrower to change the rate, often only once, before closing on the mortgage. This option is generally more expensive than a standard lock.
Some home buyers fall for common pitfalls when purchasing a home. How can you help make sure your clients don’t fall for one?
Credit.com recently featured some of the biggest mistakes home buyers often make. Their list included:
1. Trying to fix credit scores before buying a home.
Home buyers may do more harm than good if they don’t consult a financial expert first. “Even paying down credit card balances, which is a good thing as far as your credit scores and debt ratios are concerned, could be a problem if it leaves you short the cash you need to qualify to get the loan,” says Gerri Detweiler, Credit.com’s personal finance expert.
2. Not considering the future enough in their purchase.
Buyers should consider what they want out of a house not just for today but also five or 10 years down the road. Do they plan to expand their family? If so, they may need a bigger home and want a different location. Also, how long do they plan on staying at the home? That can help determine the type of mortgage that makes the most sense for them too.
3. Failing to research financing enough.
First comes the home and then the financing? Not in today’s market. Home shoppers should get prequalified for a mortgage before they start shopping for a home so they know what they can afford. “The time to make decisions about your mortgage needs is not during this 10-day window [after you sign a contract]; at most, this is time to shop for rates and fees and such,” says Keith Gumbinger, vice president of HSH.com. “Evaluating your credit, deciding on a product you prefer, how much down payment you feel comfortable making, whether you want to pay fees or points [and, if so, how much] and even shopping for a lender [getting preapproved] should happen well in advance of even wandering through the market looking at houses.”
4. Making the assumption that the Good Faith Estimate is always what you pay at closing.
The form lenders provide that estimates closing costs is not set in stone. Closing costs may actually be more, so buyers need to be prepared. Closing costs generally are about 3 percent to 5 percent of the loan amount. “Shop around and compare the Good Faith Estimate provided by the lender with that of two or three other lenders,” suggests Ryan Himmel, a CPA and founder of BIDaWIZ, a tax advice resource. “If there is a significant disparity in estimates, then request an explanation from the lender to determine if you would like to move forward.”
5. Failing to budget for home expenses.
Budgeting to purchase the home isn’t all new home owners should be squeezing in their budget. They’d be wise to not forget to budget for maintaining the home too. New home owners should budget for an increase in utility bills as well as for future maintenance and repair costs, such as repairing a furnace or roof.
Book includes all the information you need to enter exhibits in this year’s Fair
The Nevada County Fair’s Competition Handbook, which includes all the information you need to enter exhibits in this year’s Fair, is now available. If you can make it, bake it, grow it or show it, there is a category for you!
Why not showcase a talent, a project, a cooking skill, or a special creation. Try one of the traditional categories like baking cookies or entering a prized photo; or one of the specialty contests designed specifically for this year’s Fair theme of “Barnyard Safari.” Or, enter one of the specialty food contests – held each day of the Fair –for adults and children. The Competition Handbook is filled with hundreds of categories for children and adults.
Copies of the free handbook are available at the Chamber of Commerce offices, county libraries, at the Fairgrounds’ Office, or on-line at www.NevadaCountyFair.com. Area schools have also received a flyer with information about contests available to Nevada County youth.
It’s easy to enter! Look through the book, pick your favorite categories, and follow the simple steps for entering. You can even enter on-line at www.NevadaCountyFair.com. This year, there won’t be any entry fees for most categories (yes, it’s free!), you can enter on-line or at the Fair office, there will be an extended entry deadline, and there will be some great prizes! The deadline for submitting paper entry forms and on-line entries is July 20 at 4 pm.
This year’s Competition Handbook also contains information about discounted Fair tickets available now through August 7, discount days at the Fair, and nightly arena events.
The 2012 Nevada County Fair is August 8 – 12. For more information, visit www.NevadaCountyFair.com or call (530) 273-6217. You can follow the Fairgrounds on Facebook at “Nevada County Fairgrounds.”
Wendy Oaks
Publicist, Nevada County Fairgrounds
(530) 273-6217
The housing market is warming up in many areas, with multiple offers becoming more commonplace. Buyers who want an advantage in the bidding process will need more than a mortgage prequalification – they will need a preapproval.
The differences between mortgage pre-qualification and pre-approval are significant. Pre-qualifying for a mortgage is based solely on what a borrower discloses to the loan officer or broker about his/her earnings, credit score, and total assets, including what is available for a down payment. By contrast, a pre-approval requires a borrower to provide documentation of his/her income and assets.
The lender typically pulls the borrower’s credit report and score, while the borrower gathers together almost everything else needed for the actual mortgage underwriting: W-2 wage statements; 1099s; recent pay stubs; bank statements; and statements from Individual Retirement Accounts and 401(k)s; and other assets that could show the borrower has the resources to buy and maintain a home.
At one of the country’s largest mortgage lenders, Wells Fargo, the first quick review provided by an underwriter constitutes an agreement to lend. Other lenders may treat preapprovals as more of an opinion on the person’s ability to borrow, not a guarantee to lend.
With so many homes receiving multiple offers, a preapproval is more important in today’s marketplace.
The pre-approval letter should include the amount a borrower is qualified to borrow, as well as the loan officer’s contact information. Some letters may have an estimated monthly payment, but details about the loan time and interest rate are not included.
Timing also is important. Buyers should aim for obtaining a preapproval letter from a lender within 30 to 60 days of the expected purchase date. That is because some letters expire in 90 days.
On Sunday, May 27, 2012 John and I went for a walk. Leaving the Flour Garden Cafe in Grass Valley, we traveled north on Hwy 49 to the parking lot for the Independence Trail. Studying the map, we decided to try the East Trail. We had Angel on a leash, and it seemed to be the direction she wanted to go, so we humored her.
The first part of the trail seemed to literally be at two levels, the main trail on a lower level, a smaller trail on the rise to the left of the main trail. Occasionally those traveling the higher trail were forced to move down to the lower trail, where the trail narrowed or over bridges, but the upper trail continued for quite some way. For a while the trail seemed to follow the highway, but finally we turned to follow the river, and there was a beautiful green swimming hole.
Creek Crossing
Continuing, the trail turned into a bridge the skirted the side of huge rocks, no ground beneath our feet! And then a neat tunnel, a rock perched on top of twp or three other rocks, and you could pass underneath if with just a little bit of tucking out heads; there was no way around it, so if you wanted to continue the walk, you went under the rock!!
Oh and did I mention the poison oak?? You could tell they had TRIED to eradicate the stuff on the main trails, but it was still there, hiding a little way back from the trail. As a person who is horribly allergic, I stayed in the middle of the trail and hoped John would keep Angel out of it (she was getting no pats from me until she had a bath!).
Poison Oak
And speaking of Angel we had been forcing her to keep going on for about the last 15 minutes, for a strong, fierce looking dog, she really is a sissy in the wilds! After a good 45 minutes or so we met a couple coming back. They said they had walked for about an hour and hadn’t seen the river yet. We decided to follow Angels lead and come on back, next time maybe we will leave her home!
Judy J. Pinegar is a writer and her articles have appeared in many publications
John J. O’Dell Realtor® GRI
Civil Engineer
General Contractor
(530) 263-1091
Email jodell@nevadacounty.com
Record-low interest rates are a boon for home buyers and for homeowners seeking to refinance. But low appraisals are making it difficult or even impossible for some borrowers to take advantage.
Lenders report that “overly pessimistic appraisals caused by appraisers using distressed sales as ‘comparables’ are a key reason why deals are falling through.
Part of the problem is that home prices have plummeted further than many people would like to believe.
Another key factor is the appraisal changes enacted in the wake of the financial crisis that were designed to eliminate improper pressure on appraisers that often led to inflated valuations during the housing boom. However, critics say those changes resulted in unnecessarily conservative valuations and the greater use of appraisers with little knowledge of local market conditions.
Additionally, accurate valuations can be difficult to come by when sales are thin and prices are just beginning to edge upward after prolonged declines. Many borrowers are “in a holding pattern for extended periods” because it’s difficult to find comparable sales to support the appraisal value.
Despite these issues, there are ways consumers can improve their odds of getting a deal done. For example, borrowers can look at comparable sales from the last three to six months before seeking a mortgage to know the range of home values in the area.
Secondly, although borrowers cannot choose their appraiser, they can accompany the appraiser during the inspection, pointing out improvements that add to the home’s value. They also can provide the appraiser with comparable sales that can be used to support the valuation.
Borrowers also can request that the lender review the appraiser’s findings, though the chances of success are slim. If the borrow thinks the value is unreasonably low, they should first look for factual errors, such as an erroneous number of bedrooms or miscalculated square footage.
