Federal Reserve Chairman Ben Bernanke Tuesday signaled he is finished cutting interest rates for now and has turned his attention to concerns about inflation in the world's foreign exchange markets in the wake of the U.S. dollar's 16 percent decline against the Euro over the past year.
Speaking to the International Monetary Conference, Bernanke stated that, "For now, policy seems well positioned to promote moderate growth and price stability over time. We will, of course, be watching the evolving situation closely and are prepared to act as needed to meet our dual mandate."
Observers called Bernanke’s statement a "strong defense of the dollar"
and a sign that the Fed believes a weaker U.S. dollar would be detrimental. Declines over the past year against the Euro and more recent oil price surges have increased fears of inflation. These fears are one reason the Fed is not expected to pare interest rates further at least through October.
Bernanke called financial market conditions "strained" and reiterated that U.S. consumers face challenges from declining home prices and stricter mortgage and other lending standards, a weaker job market and higher energy costs. He added that economic growth will remain limited until home prices and the housing market show clearer signs of stabilization.
Friday, June 13, 2008
Thursday, June 12, 2008
New cell phone laws effective July 1st
I know we all use cell phones to much in our cars, but maybe now this will help. As a real estate agent, it is always important to keep up with new regulations and this applies to everyone and anyone who uses a cell phone while driving.
So I just wanted to pass this along.
To new laws dealing with the use of wireless telephones while driving go into effect July 1, 2008. If you don't have a headset or hands free device installed, check out www.headsetking.com for great deals. You can get a wireless bluetooth headset for as low as $13.95. Please pass this information along to your colleagues, friends and family.
California Highway Patrol Wireless Telephone Laws FAQs
Q: When do the new wireless telephone laws take effect?
A: The new laws take effect July 1, 2008
Q: What is the difference between the two laws?
A: The first law prohibits all drivers from using a handheld wireless telephone while operating a motor vehicle. (Vehicle Code (VC) §23123). Motorists 18 and over may use a hands-free device. The second law prohibits drivers under the age of 18 from using a wireless telephone or a hands-free device while operating a motor vehicle (VC §23124).
Q: What if I need to use my telephone during an emergency, and I do not have a hands- free device?
A: The law allows a driver to use a wireless telephone to make emergency calls to a law enforcement agency, a medical provider, the fire department, or other emergency services agency.
Q: What are the fines if I’m convicted?
A: The base fine for the FIRST offense is $20 and $50 for subsequent convictions. According to the Uniform Bail and Penalty Schedule, with the addition of penalty assessments, a first offense is $76 and a second offense is $190.
Q: Will I receive a point on my drivers license if I’m convicted for a violation of the wireless telephone law?
A: NO. The violation is a reportable offense: however, DMV will not assign a violation point.
Q: Will the conviction appear on my driving record?
A: Yes, but the violation point will not be added.
Q: Will there be a grace period when motorists will only get a warning?
A: NO. The law becomes in effect on July 1, 2008. Whether a citation is issued is always at the discretion of the officer based upon his or her determination of the most appropriate remedy for the situation.
Q: Are passengers affected by this law?
A: No. This law only applies to the person driving a motor vehicle.
Q: Do these laws apply to out-of-state drivers whose home states do not have such laws?
A: Yes
Q: Can I be pulled over by a law enforcement officer for using my handheld wireless telephone?
A: YES. A law enforcement officer can pull you over just for this infraction.
Q: What if my phone has a push-to-talk feature, can I use that?
A: No. The law does provide an exception for those operating a commercial motor truck or truck tractor (excluding pickups), implements of husbandry, farm vehicle or tow truck, to use a two-way radio operated by a “push-to-talk” feature. However, a push-to-talk feature attached to a hands-free ear piece or other hands-free device is acceptable.
Q: What other exceptions are there?
A: Operators of an authorized emergency vehicle during the course of employment are exempt as are those motorists operating a vehicle on private property
DRIVERS 18 AND OVER
Drivers 18 and over will be allowed to use a hands-free device to talk on their wireless telephone while driving. The following FAQs apply to those motorists 18 and over.
Q: Does the new “hands-free” law prohibit you from dialing a wireless telephone while driving or just talking on it?
A: The new law does not prohibit dialing, but drivers are strongly urged not to dial while driving.
Q: Will it be legal to use a Blue Tooth or other earpiece?
A: Yes, however you cannot have BOTH ears covered.
Q: Does the new hands-free law allow you to use the speaker phone function of your wireless telephone while driving?
A: Yes.
Q: Does the new “hands-free” law allow drivers 18 and over to text page while driving?
A: The law does not specifically prohibit that, but an officer can pull over and issue a citation to a driver of any age if, in the officer’s opinion, the driver was distracted and not operating the vehicle safely. Text paging while driving is unsafe at any speed and is strongly discouraged.
DRIVERS UNDER 18
Q: Am I allowed to use my wireless telephone hands free?
A: NO. Drivers under the age of 18 may not use a wireless telephone, pager, laptop or any other electronic communication or mobile services device to speak or text while driving in any manner, even hands free. EXCEPTION: Permitted in emergency situations to call police, fire or medical authorities. (VC §23124).
Q: Why is the law stricter for provisional drivers?
A: Statistics show that teen drivers are more likely than older drivers to be involved in crashes because they lack driving experience and tend to take greater risks. Teen drivers are vulnerable to driving distractions such as talking with passengers, eating or drinking, and talking or texting on wireless phones, which increase the chance of getting involved in serious vehicle crashes.
Q: Can my parents give me permission to allow me to use my wireless telephone while driving?
A: NO. The only exception is an emergency situation that requires you to call a law enforcement agency, a health care provider, the fire department or other emergency agency entity.
Q: Does the law apply to me if I’m an emancipated minor?
A: Yes. The restriction applies to all licensed drivers who are under the age of 18.
Q: If I have my parent(s) or someone age 25 years or older in the car with me, may I use my wireless telephone while driving?
A: NO. You may only use your wireless telephone in an emergency situation.
Q: Will the restriction appear on my provisional license?
A: No
Q: May I use the hands-free feature while driving if my car has the feature built in?
A: NO. The law prohibits anyone under the age of 18 from using any type of wireless device while driving, except in an emergency situation.
Q: Can a law enforcement officer stop me for using my hands-free device while driving?
A: No. For drivers under the age of 18, this is considered a SECONDARY violation meaning that a law enforcement officer may cite you for using a hands-free wireless phone if you were pulled over for another violation. However, the prohibition against using a handheld wireless telephone while driving is a PRIMARY violation for which a law enforcement officer can pull you over.
So I just wanted to pass this along.
To new laws dealing with the use of wireless telephones while driving go into effect July 1, 2008. If you don't have a headset or hands free device installed, check out www.headsetking.com for great deals. You can get a wireless bluetooth headset for as low as $13.95. Please pass this information along to your colleagues, friends and family.
California Highway Patrol Wireless Telephone Laws FAQs
Q: When do the new wireless telephone laws take effect?
A: The new laws take effect July 1, 2008
Q: What is the difference between the two laws?
A: The first law prohibits all drivers from using a handheld wireless telephone while operating a motor vehicle. (Vehicle Code (VC) §23123). Motorists 18 and over may use a hands-free device. The second law prohibits drivers under the age of 18 from using a wireless telephone or a hands-free device while operating a motor vehicle (VC §23124).
Q: What if I need to use my telephone during an emergency, and I do not have a hands- free device?
A: The law allows a driver to use a wireless telephone to make emergency calls to a law enforcement agency, a medical provider, the fire department, or other emergency services agency.
Q: What are the fines if I’m convicted?
A: The base fine for the FIRST offense is $20 and $50 for subsequent convictions. According to the Uniform Bail and Penalty Schedule, with the addition of penalty assessments, a first offense is $76 and a second offense is $190.
Q: Will I receive a point on my drivers license if I’m convicted for a violation of the wireless telephone law?
A: NO. The violation is a reportable offense: however, DMV will not assign a violation point.
Q: Will the conviction appear on my driving record?
A: Yes, but the violation point will not be added.
Q: Will there be a grace period when motorists will only get a warning?
A: NO. The law becomes in effect on July 1, 2008. Whether a citation is issued is always at the discretion of the officer based upon his or her determination of the most appropriate remedy for the situation.
Q: Are passengers affected by this law?
A: No. This law only applies to the person driving a motor vehicle.
Q: Do these laws apply to out-of-state drivers whose home states do not have such laws?
A: Yes
Q: Can I be pulled over by a law enforcement officer for using my handheld wireless telephone?
A: YES. A law enforcement officer can pull you over just for this infraction.
Q: What if my phone has a push-to-talk feature, can I use that?
A: No. The law does provide an exception for those operating a commercial motor truck or truck tractor (excluding pickups), implements of husbandry, farm vehicle or tow truck, to use a two-way radio operated by a “push-to-talk” feature. However, a push-to-talk feature attached to a hands-free ear piece or other hands-free device is acceptable.
Q: What other exceptions are there?
A: Operators of an authorized emergency vehicle during the course of employment are exempt as are those motorists operating a vehicle on private property
DRIVERS 18 AND OVER
Drivers 18 and over will be allowed to use a hands-free device to talk on their wireless telephone while driving. The following FAQs apply to those motorists 18 and over.
Q: Does the new “hands-free” law prohibit you from dialing a wireless telephone while driving or just talking on it?
A: The new law does not prohibit dialing, but drivers are strongly urged not to dial while driving.
Q: Will it be legal to use a Blue Tooth or other earpiece?
A: Yes, however you cannot have BOTH ears covered.
Q: Does the new hands-free law allow you to use the speaker phone function of your wireless telephone while driving?
A: Yes.
Q: Does the new “hands-free” law allow drivers 18 and over to text page while driving?
A: The law does not specifically prohibit that, but an officer can pull over and issue a citation to a driver of any age if, in the officer’s opinion, the driver was distracted and not operating the vehicle safely. Text paging while driving is unsafe at any speed and is strongly discouraged.
DRIVERS UNDER 18
Q: Am I allowed to use my wireless telephone hands free?
A: NO. Drivers under the age of 18 may not use a wireless telephone, pager, laptop or any other electronic communication or mobile services device to speak or text while driving in any manner, even hands free. EXCEPTION: Permitted in emergency situations to call police, fire or medical authorities. (VC §23124).
Q: Why is the law stricter for provisional drivers?
A: Statistics show that teen drivers are more likely than older drivers to be involved in crashes because they lack driving experience and tend to take greater risks. Teen drivers are vulnerable to driving distractions such as talking with passengers, eating or drinking, and talking or texting on wireless phones, which increase the chance of getting involved in serious vehicle crashes.
Q: Can my parents give me permission to allow me to use my wireless telephone while driving?
A: NO. The only exception is an emergency situation that requires you to call a law enforcement agency, a health care provider, the fire department or other emergency agency entity.
Q: Does the law apply to me if I’m an emancipated minor?
A: Yes. The restriction applies to all licensed drivers who are under the age of 18.
Q: If I have my parent(s) or someone age 25 years or older in the car with me, may I use my wireless telephone while driving?
A: NO. You may only use your wireless telephone in an emergency situation.
Q: Will the restriction appear on my provisional license?
A: No
Q: May I use the hands-free feature while driving if my car has the feature built in?
A: NO. The law prohibits anyone under the age of 18 from using any type of wireless device while driving, except in an emergency situation.
Q: Can a law enforcement officer stop me for using my hands-free device while driving?
A: No. For drivers under the age of 18, this is considered a SECONDARY violation meaning that a law enforcement officer may cite you for using a hands-free wireless phone if you were pulled over for another violation. However, the prohibition against using a handheld wireless telephone while driving is a PRIMARY violation for which a law enforcement officer can pull you over.
Sunday, June 8, 2008
Santa Cruz County Real Estate Report for May 2008
Not much has changed since 60 Minutes first broadcast the story last January about the causes of the subprime mortgage mess and its effect on the economy. What’s behind the subprime mortgage mess? Banks loaned hundreds of millions of dollars to homebuyers who otherwise wouldn’t qualify on the assumption that home values would continue to increase. Wall Street packaged these loans as securities and sold them as investments. Those investments collapsed beginning in July 2007 under the weight of the housing market slowdown. Observers say many borrowers who ended up in default or foreclosure got there because they bought without a down payment and borrowed significantly more than the home was worth. Mortgage lenders, meanwhile, readily approved buyers based on their "stated income. According to CBS, "100 of the world’s biggest financial institutions now are on the hook for a reported total of $379 million in bad debt – and counting.
Making Sense of the Story for Consumers:
Homeowners who borrowed against the value of their second home, or who financed the purchase of their second home and subsequent homes by pledging their primary home or other properties as security, may be liable for taxes on the difference in value should they sell any of their properties for a price less than the value owed on the mortgage. Under the Mortgage Forgiveness Debt Relief Act, a homeowner doesn’t have to pay taxes on forgiven debt if the collateral behind the mortgage is owner-occupied. That provision doesn’t apply to a growing number of homeowners renting out their second home or investment property. Of some 7.5 million vacation homes, only about 10 percent are considered owner-occupied, according to the NATIONAL ASSOCIATION of REALTORS® (NAR). Many of these homeowners borrowed against the ever-increasing (or so it seemed) value of these properties to finance improvements or to buy other properties. There may be a way out for some, one bankruptcy lawyer counsels: Get a lender to agree that foreclosure “fully satisfies all obligations under the loan.” That might protect the seller from having to pay taxes on the forgiven debt – although one attorney said, "I sure don’t want to be the one litigating it" in court.
Some Interesting Info about Short Sales:
In a short sale, homesellers ask their lender to accept a buyer’ s offer that is less than the amount needed to pay off the balance of the mortgage. Lenders who agree to a short sale also typically agree to forgive the remaining debt. Many call short sales a win-win for lenders and homeowners. The homeowner avoids foreclosure and banks avoid the cost of carrying the property through the lengthy foreclosure process, not to mention the hassles of selling an empty property in a market saturated with other foreclosures.
On average, lenders lose approximately 19% of a mortgage’s value with a short sale but lose an average of 40% on mortgages that proceed to foreclosure, according to one source. The problem with short sales? Like other foreclosure mitigation efforts, the challenge is in determining which financial entity “owns” the loan and, thus, has the final say on a short sale offer. Banks also have been slow to ramp up internal processes needed to review and approve short sale packages. Delays and last-minute dickering often prolong or even derail transaction closings and creates frustration for potential homebuyers.
Local Monthly Stats for May show that the most activity in the Santa Cruz County market on single family homes was in the $500,000 price range with the listing ratio vs selling ratio at <9.3%>. Not surprising following in second were homes priced over $1M. This area of the market seems to be the one where second home buyers and investors are seeing the most opportunity in getting a great value.
----------------------------------------------------------------------
May Statistical Highlights for Single Family Homes:* Inventory increased 2.2% from April 2008, and up 6.6% compared to May 2007
* Sales increased 15.2% from April 2008, but still down 16.5% compared to May 2007
* Days on the market decreased to 91, month prior 106, prior year 89
* Median home price decreased from prior month to $645,000, and decreased 15.1% from May 2007
* Sales price vs.listing price ratio decreased to 95.51% from April 2008
* 9.8 months of inventory available at the end of May as compared to 7.7 in May 2007
-----------------------------------------------------------------------
(These statistics are believed to be accurate but not guaranteed)
For the second straight month The area of the market selling closer to listing price is the $800,000 price range followed closely by the $900,000 price range. Were these properties once priced over a million?
Making Sense of the Story for Consumers:
Homeowners who borrowed against the value of their second home, or who financed the purchase of their second home and subsequent homes by pledging their primary home or other properties as security, may be liable for taxes on the difference in value should they sell any of their properties for a price less than the value owed on the mortgage. Under the Mortgage Forgiveness Debt Relief Act, a homeowner doesn’t have to pay taxes on forgiven debt if the collateral behind the mortgage is owner-occupied. That provision doesn’t apply to a growing number of homeowners renting out their second home or investment property. Of some 7.5 million vacation homes, only about 10 percent are considered owner-occupied, according to the NATIONAL ASSOCIATION of REALTORS® (NAR). Many of these homeowners borrowed against the ever-increasing (or so it seemed) value of these properties to finance improvements or to buy other properties. There may be a way out for some, one bankruptcy lawyer counsels: Get a lender to agree that foreclosure “fully satisfies all obligations under the loan.” That might protect the seller from having to pay taxes on the forgiven debt – although one attorney said, "I sure don’t want to be the one litigating it" in court.
Some Interesting Info about Short Sales:
In a short sale, homesellers ask their lender to accept a buyer’ s offer that is less than the amount needed to pay off the balance of the mortgage. Lenders who agree to a short sale also typically agree to forgive the remaining debt. Many call short sales a win-win for lenders and homeowners. The homeowner avoids foreclosure and banks avoid the cost of carrying the property through the lengthy foreclosure process, not to mention the hassles of selling an empty property in a market saturated with other foreclosures.
On average, lenders lose approximately 19% of a mortgage’s value with a short sale but lose an average of 40% on mortgages that proceed to foreclosure, according to one source. The problem with short sales? Like other foreclosure mitigation efforts, the challenge is in determining which financial entity “owns” the loan and, thus, has the final say on a short sale offer. Banks also have been slow to ramp up internal processes needed to review and approve short sale packages. Delays and last-minute dickering often prolong or even derail transaction closings and creates frustration for potential homebuyers.
Local Monthly Stats for May show that the most activity in the Santa Cruz County market on single family homes was in the $500,000 price range with the listing ratio vs selling ratio at <9.3%>. Not surprising following in second were homes priced over $1M. This area of the market seems to be the one where second home buyers and investors are seeing the most opportunity in getting a great value.
----------------------------------------------------------------------
May Statistical Highlights for Single Family Homes:* Inventory increased 2.2% from April 2008, and up 6.6% compared to May 2007
* Sales increased 15.2% from April 2008, but still down 16.5% compared to May 2007
* Days on the market decreased to 91, month prior 106, prior year 89
* Median home price decreased from prior month to $645,000, and decreased 15.1% from May 2007
* Sales price vs.listing price ratio decreased to 95.51% from April 2008
* 9.8 months of inventory available at the end of May as compared to 7.7 in May 2007
-----------------------------------------------------------------------
(These statistics are believed to be accurate but not guaranteed)
For the second straight month The area of the market selling closer to listing price is the $800,000 price range followed closely by the $900,000 price range. Were these properties once priced over a million?
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