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What Do The Real Estate Fundamentals Have To Do With The Current Market?  The reason we are in a severe recession is due to banks lending to unqualified or marginally qualified buyers. The lending guidelines were relaxed to include many with questionable credit history and limited savings history. Now, the federal government and banks are going back to the fundamentals of real estate lending; they dare to check buyer's income, savings, and credit history. Because of this change, it is equally important that Buyers of real estate understand the fundamentals of real estate investing; before shopping for a new home or rental property.
Silicon Valley REO will conduct a seminar to help buyers understand the real estate market trends and the fundamentals of real estate in the Silicon Valley area. We will show you what will happen to our local market and the fundamental picture of the entire south bay, by area. This will help to guide your investing decision. The seminar will be at the Lemon Grass Restaurant at 7:00PM, March 26th, 2009. There will be a $10 charge for admission with finger food services.
Please call 408 998-1300 or email
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to register.
Lemon Grass Restaurant
1143 Story Road, Suite 100
San Jose, CA 95122 |
Take A Closer Look.... Bank owned listings are still the price leader and the supply is in retreat compared to December of 2008. The areas with the most bank-owned inventory saw the most activity and we started to experience prices firming up. For the average buyers and real estate agents looking into MLS inventory, prices appeared to be heading down. For the active buyers and agents working the bank owned market, the sold prices for February and March will be reported in April - May; showing a slight increase in prices.
Taking a closer look at the sales data by areas, the high end markets in Silicon Valley had very little sales and months of inventory are on the rise. The increase in inventory, couple with lower sales activity, may result in lower prices in the near term. 
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Silicon Valley REO...Call To Action! If you are a serious buyer and would like to know more about the opportunity that awaits you in the Silicon Valley Real Estate Market, please sign up to be a member. Membership is always free and you will gain access to our data bank; full of facts to help you make an informed decision. New Location.....Introducing Our NEW LOCATION at 1143 Story Rd  | |
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Featured Article
 Speaking of qualifying, if you are not sure if you can take advantage of the $8,000 tax incentive, here are some examples to help you better understand the income limits and phase-out structure.
The $8,000 incentive starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000 and is phased out completely at incomes of $170,000 for couples and $95,000 for single filers.
To break down what this phase-out means, the National Association of Homebuilders (NAHB) offers the following examples:
Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phase-out threshold is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer incentive to this couple, multiply $8,000 by 0.5. The result is $4,000.
Example 2: Assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible to reduce the tax liability by $2,800. |
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