Steven’s numbers indicate that the current median price of $449,000 and the average interest rate of 3.9% yields a monthly payment of $2,118.  The last time you could purchase a median priced home for a lower monthly payment was 1999.  The median home price was only $280,900 but the average interest rate of 7.4% netted a monthly payment of $1,945.

Have we returned to a Seller’s Market?

Every month I look at the Inventory Snapshot for Orange County as I believe this is a great indicator of our current housing market.  For the last couple of years we have been averaging over 6 months of inventory.  A 6 month supply is considered an equilibrium between a Buyer’s Market (more than 6 months) and a Seller’s Market (less than 6 months). 

In January our inventory was reduced  to just over 3 months.  This could be the beginning of a Seller’s Market.  If this trend continues it could signal a major turn in our Orange County Real Estate Market.  We’ll watch this for the next few months.  Stay tuned.

• 
  

  Make Your Own ‘Star Trek’ Pocket Doors

  U.K. geek shows you how to build automatic doors like the ones on the Starship Enterprise. Space saver, anyone? Read

LOS ANGELES (Aug. 19) — California Regional Multiple Listing Service, Inc. (CRMLS) and the Southern California MLS (SoCalMLS) have agreed to merge, creating the largest multiple listing service in the nation, it was jointly announced today by Len Herman, 2011 president of SoCalMLS and Rob Arrietta, 2011 president of CRMLS.

“This union was long overdue,” said 2011 SoCalMLS President Len Herman. “Combining two highly complementary organizations is what our brokers and subscribers want, and now we have the opportunity to offer even greater value to our customers.”

“The combination of two of the largest MLSs in the nation simply makes sense for brokerages, agents, and REALTOR® associations,” said 2011 CRMLS President Rob Arrietta. “The combination of our products and services gives real estate professionals throughout California an extremely cost effective solution for their MLS services.”

The combined entity will remain as CRMLS, which is based in San Dimas, Calif, with Rob Arrietta serving as president of the organization. Len Herman will remain on as part of the transition team. CRMLS will now be providing products and services to more than 68,000 participants and subscribers throughout California.

About CRMLS
CRMLS delivers, through local member associations, the most affordable, reliable, and convenient listing technology service available, and provides products and services that support real estate professionals in maximizing the use of property data to achieve their business goals.

Interest rates are low, as are home values but rents are high and climbing higher.  This is the perfect time for First Time Home Buyers to seriously consider taking advantage of the situation.  Renters would be wise to examine the cost of renting compared with the cost of Home Ownership and make the smart and obvious move.

If you rent for 3 years at $3,000/month you will have spent $108,000 in rent, in 10 years you would have spent $360,000.  For the same $3,000/month you can purchase a $400,000 home and the same monthly payment will include principal, interest, taxes and insurance. When you add in tax deductions for the mortgage interest and property taxes you are paying less to own a home than the cost of rent.

The most common objective for the First Time Buyer is the lack of a down payment.  Bank of America offers a Platinum Program which in conjunction with an FHA loan features a 3% Grant. After the grant the buyer purchasing a $400,000 home with an FHA loan would need an additional $2,305.  The returned security deposit on your rental is probably more than this.

The Seller is allowed to credit the Buyer for all of the buyer’s closing costs, approximately $8,685.  There is no reserve fund requirement by FHA.  Leaving $2,305 for the Buyer to come up with, and the $2,305 can be a gift from relative.

Call the Herman White Scarcelli Real Estate Group today so that we can get you an appointment with our lender to see if you qualify.

Thank you to the Kevin Budde Team at Bank of America for providing us with this great information.

On September 30, 2011 the temporary high balance loan limits are set to expire.  At this time it does not seem likely that Congress will extend the temporary higher loan limits, but rather allow the legislation to expire, which will revert loan limits to the lower permanent high balance levels.

Fannie Mae, Freddie Mac and FHA maximum loan limits will be reduced in high-cost counties from $729,750 to $625,500, for 1 unit properties. Orange County is a high-cost county. The VA new maximum loan limit has not yet been announced.  All loans must be funded by September 30, 2011 to be eligible for the current loan limits. Most lenders will halt taking applications 60-90 days prior to this date, which is quickly approaching.

How will this affect YOU?

Calculating using an FHA 3.5% down payment, in order to obtain the new maximum reduced loan amount, the sales price will fall from approximately $756,000 to $648,000.

Fannie Mae and Freddie Mac is 10% down payment. In order to obtain the new maximum loan amount, the sales price will fall from approximately $810,000 to $695,000.

Above the new high balance loan limit the financing is considered Jumbo and the down payment minimum currently is 20%. The interest rates are higher and the underwriting approximately restrictions are more stringent with Jumbo financing.

If you are currently waiting to buy with a minimum down payment, please realize that unless sales prices fall another approximately $110,000 you may miss out on the opportunity to purchase a home when the loan limits change.

Len has been an active participant on the SoCalMLS Board of Directors for several years. Commenting about his newest position as President, Mr. Herman said, “I am honored to assume the presidency of this great organization, which truly is one of the best in the nation.  We’ve got huge plans ahead for 2011, one of which is introducing Fusion the browser neutral hybrid of Tempo MLS. I can guarantee it will be a year of excitement and positive transformations!”

“We’re very pleased and excited to have a dynamic president with proven leadership, diverse interests as well as a strong background and passion for the real estate industry”, said SoCalMLS General Manager, Adrese Roundtree.

After graduating from Temple University with a Business degree, Len went to work as a Vice President of Sales and Marketing in the Philadelphia hi-tech industry segment. Ten years later, he relocated to Silicon Valley to open a West Coast sales office for his company. After changing companies he was relocated to Orange County California.

In 2002, Len decided to combine his long career in technology and sales with his interest in Real Estate and obtained his real estate license. In addition to running a busy real estate practice, Len volunteers his time by serving in a number of organization positions: besides his SoCalMLS presidency, he is an Orange County Association of Realtors Director and a California Association of Realtors Director.

Len is a principle in the Herman White Scarcelli Real Estate Group at Keller Williams Realty in Mission Viejo California.

Gary shares his insights into living a happy and prosperous life, whether you are a REALTOR or any other profession…

The borrower’s PMI will be automatically canceled by the lender when both of the following conditions are met: 1) the mortgage balance is 78% of the home’s original value and 2) all payments had been current on the loan.

The borrower can send the lender a written request to cancel the PMI when all of the following conditions are met: 1) the mortgage balance is 80% of the original value of the property 2) the mortgage payments were paid in a timely manner 3) no other loans have been taken out on the home and 4) the property value of the home has not declined.

An edible garden featuring vegetables and herbs can save you a bundle if you keep it simple and raise plants that offer high yields.

How much can you save?

A backyard edible garden will trim costs from your grocery bill while providing you and your family with the freshest produce possible. According to Bruce Butterfield, research director for the National Gardening Association, a well-maintained garden can produce a half-pound of fresh vegetables for every square foot of garden space. At average market prices, that means a garden returns about $1 per square foot.Studies conducted by W. Atlee Burpee Co., a mail-order seed company, are even more optimistic. According to Burpee, the average cost-to-benefit ratio of home-grown produce for those who have established gardens is better than 1 to 25. That means every $1 spent on seeds and supplies yields at least $25 worth of vegetables.

Even first-time gardeners will benefit. George Ball, owner of Burpee Co., says that a $10 investment in seeds for tomatoes, beans, bell peppers, lettuce, peas, and carrots, plus $80 for soil, fertilizer, and the cost of building several raised beds, can yield more than $250 worth of veggies and herbs—a substantial portion of the approximately $3,465 the average U.S. family spends on a year’s worth of groceries.

For families that save the harvest, either by freezing, canning, or drying, the cost-benefit ratio climbs even higher. Martha Garway, who tends a 10×10 plot in a Providence, R.I., community garden, freezes much of her summer produce, such as okra, tomatoes, and peppers.

That summer harvest, which costs her $20 for the plot plus the cost of seeds (and she tends to save her own), enables her to “buy only meat and fish through winter—no vegetables,” she says.  

Top plants for great returns

For the average gardener in most regions of the country, here are some of the most cost-effective vegetables to grow, and an estimate of what you’ll save over store-bought produce. These figures reflect veggies harvested for fresh eating only; if you freeze or can produce to consume beyond the harvest season, your savings will multiply.

Slicing tomato
Seedling cost: $2.00/plant
Yield: 10-15 pounds tomatoes/plant
Savings: $15-$23/plant  

Bell pepper
Seedling cost: $2.00/plant
Yield: 6-8 peppers/plant
Savings: $9-$12/plant

Cucumber
Seed cost: $2.95/packet of 240 seeds
Yield: 10-15 pounds of cucumbers per plant
Savings: $5-$7.50/plant

Bush green beans
Seed cost: $2.95/packet of seeds
Yield: 2.5-3 pounds/5-foot row
Savings: $3.75-$4.50/row

Pole green beans
Seed cost: $2.95/packet of seeds
Yield: 4-5 pounds/5-foot row
Savings: $6-$7.50/row

Leaf lettuce
Seed cost: $2.00/packet of mixed lettuces
Yield: 16 oz. of salad every 3-5 days after leaves mature
Savings: $4 per week

A few vining vegetables, like squash or Malabar spinach, produce abundant yields for the price of a packet of seeds ($2.95). Winter squash types in particular are easy to cure and store, lasting well into spring and offering savings of up to $10-$15 per vine.   

Herbs

Herbs offer amazing return. For $1.50, you can buy a 3-inch pot of parsley, chives, oregano, mint, or basil and harvest leaves all season long. With the perennial herbs, like oregano and mint, the harvest continues for years with little maintenance action required. Compare that to “fresh” herbs you’ll get at the grocery for $3 for a 3-ounce packet.   

What not to grow

Some vegetables aren’t cost-effective in an edible garden. For instance, you could spend $20 for organic seed potatoes that will yield 15 pounds of spuds from a 20-foot row planting. Compare that with the average price of white potatoes in the supermarket at $1 per pound. Then again, you can’t find Russian Banana fingerlings or Purple Viking potatoes at the grocer, so if you want a specialty spud, grow your own.

Other veggies that don’t pay to grow are ones that are finicky, like celery or asparagus. Both are labor intensive. Onions are relatively cheap to purchase, and it can be difficult to get a large yield of good-size bulbs without a massive garden.

Try growing shallots instead, a gourmet-style onion family member that produces green tops you can harvest like chives and mild flavored bulbs that cost up to $4 a pound at the store.   

How big an edible garden?

The median size of an edible garden is about 100 sq. ft., according to the National Gardening Association. For a family of four, a growing space of 200 sq. ft. should keep the family in veggies all summer long. Plan to spend 4 hours a week tending your garden, with 8-12 hours for preparing the planting area in spring, shopping for seeds and seedlings, and sowing crops.

Julie Martens is a writer with 21 years’ experience in the field of gardening. Her bylines appear in magazines such as Nature’s Garden, Country Gardens, and Garden Ideas & Outdoor Living. She recently moved into a renovated 1915 home and is busily working on a new garden.