Mrs. Ann Timoney, a great Personal Finance Advisor and Mortgage Advisor gave me an interesting article this morning that I thought you might like to read.

I am going to include this paragraph about her before the article. Ms. Timoney has a 30 year history in the mortgage and financial services industry. Most recently, Ann worked for First Horizon Bank/Elliot Ames, Inc. During her tenure, she was a member of the prestigious Chairman’s Circle. Ann has a Bachelor’s Degree from North Carolina School of the Arts. She is a graduate of the two year Business Professional’s Course with the Aji Network. She is a Series 65 licensed Investment Advisor Representative and a Personal Finance Advisor with Opes. Ann works with her clients to help them achieve their objectives of residential property ownership, building wealth and enhancing their quality of life. Ann lives in San Jose. She can be reached at atimoney@opesadvisors.com · 408.458.3500.

Buy Against the Herd. The opportunity to move against the herd is in front of us right now. Common sense tells us to buy when rates are low. Sounds reasonable, right? But let’s take that thought further and see where it leads.

If we accept that common sense tells us to buy when rates are low, then:

• Common sense tells us to buy when there are the most competitors because common sense by definition means that most everyone will arrive at the same conclusion.
• Common sense tells us that if we are to get the house we want, then we must outbid every competitor who is bidding on that house.

Remembering the principles of supply and demand, we know that this will drive the price higher. This must sound familiar to those who have been in the Bay Area real estate market over the past few years and who have routinely witnessed 10 to 15 offers on homes for sale.

Now that rates are higher relative to the last five years, common sense is that maybe buying right now is not such a great idea. If common sense is telling you to not buy now because rates are higher, then:

• Common sense is telling you not to buy when there are fewer competitors and less pressure for a house price to be bid up.
• Common sense tells you to sit on the sidelines when it is a ‘buyer’s” market.

It seems that common sense leads one into taking actions that have them compete with the most bidders and to sit on the sidelines when there are fewer bidders. Might it be better to buy when rates are high and there are fewer competitors? We always hear that it is more effective to not follow the herd and we see an excellent example of this in today’s higher interest rate market. The borrower always has the option to refinance if rates drop. This gives buyers the opportunity to buy a house where there are fewer competitors and then to lower the costs later if rates decline. Some buyers cannot afford or qualify for loans at the higher rate. This is good news for those buyers who can afford and can qualify. This is what it means to have fewer competitors. Some will choose to not buy because of higher rates and others will be forced out of the opportunity by the market mechanisms at work.

Talk with your Realtor to get specific grounding about what is happening with properties in the area where you’d like to buy. Are the days on market increasing? Are there multiple offers or are properties selling to one offer? Come talk with us at Opes. We’ll work with your situation with our proprietary Future Value Tool which creates a personalized financial forecast for each of our clients. With the results, we can help you assess what you can responsibly afford that still enables you to fund your retirement, college expenses and lifestyle expenses. Perhaps going against common sense will enrich you in ways you never expected. If there was ever an opportunity to move against the herd, it is in front of us right now.  

http://www.realtoramir.com/

For instant MLS search click here. 

For an automated MLS search click here. 

The information being provided is for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

Popularity: 96% [?]

The very popular Supervisor Ken Yeager has just emailed me his useful District 4 Newsletter that was published on November 13,2007. His newsletter is a great way to find out what is going on in the County of Santa Clara. I highly recommend subscribing to his newsletter.

In this issue there is a message from Supervisor Yeager, Local Leaders and Media Conquer Third Annual Stair Challenge, Public Health Department Offers Ways to Limit Staph Infections, a very useful Calendar of Events and Five tips on preparing for an earthquake.

You can contact John Myers at  john.myers@bos.sccgov.org to subscribe to this useful newsletter. Here is the full information for the Supervisor:

Supervisor Ken Yeager
County Govt. Center, E. Wing
70 W. Hedding St., 10th Floor
San Jose, Calif. 95110
Phone: 408-299-5040
Fax:     408-299-2038
Supervisor.Yeager@bos.sccgov.org
http://www.supervisoryeager.org

http://www.realtoramir.com/

For instant MLS search click here. 

For an automated MLS search click here. 

The information being provided is for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

Popularity: 93% [?]

I was very sorry to hear that the Disaster Striked San Francisco Bay: 58,000 Gallon Oil Spill Rocks Our Environment As Ship Collides With Bay Bridge . I live in the South San Francisco Bay area myself so this disascter hits very close to home.

California Association of Realtors Calls on it’s members to support wildfire victims.

Fannie Mae profit down by more than half in first 9 months of year and MORTGAGE RATES NEAR SIX-MONTH LOW. Another player in the Mortgage problems is blamed as Appraisers take heat for role in housing crisis . Emerging Markets Still Look Strong, U.S. Housing Weak

In the fun news Hot property: Matthew McConaughey on the move  and there were very interesting homre reported in Top five transactions  San Jose Mercury News. Thie weeks Fantasy Home is a Chateau, vineyard in the countryside.

My favorite Inman Blog post today is “Who’s spinning whom?“.  “The real estate market, then and now” has some funny insights and hindsights.

In the Silicon Valley’s Real Estate market that last mouth’s market condition seems like a decade ago the Natinal Association of Realtor reports in their regular segment:  This month in real estate history: “Come On In, Fellows, The Water’s Fine”. This article has very interesting facts about how the organized real estate started in US.

Seeking Alpha tracks all the housing bubble news in: Housing Bubble and Real Estate Market Tracker American Public Media’s Marketplace has an article on Bernanke states: It’ll get worse, then better. This seems to hold true for a large part of Santa Clara County as well.  Still the neighborhoods with good schools and close to dontown areas are still very hot.My real favorite post of Seeking alpha is “Sorry Folks, the Housing ATM is Closed” where they refer the cashing out of equity by millions of home owners as a “Housing ATM”. I find it a very funny term.

Last but not least there is an interesting article that shows you how to save on winter heating bills.

http://www.realtoramir.com/

For instant MLS search click here. 

For an automated MLS search click here. 

The information being provided is for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

Popularity: 35% [?]