5th ANNUAL BONNY DOON ART & WINE FESTIVAL @ THE BONNY DOON AIRPORT, THIS SATURDAY!

Saturday, June 2 1:00 PM to 4:30 PM

The Bonny Doon Community School Foundation invites you to the 5th Annual

Bonny Doon Art & Wine Festival

Proudly sponsored by:

State Farm Agent, Aleene Althouse;

Farmer's Insurance Agent Doug Banks;

Tristar Home Loan Services, Inc. Stacy Theilen

New location!!! Bonny Doon Airport Gardens

8647 Empire Grade

Plenty of free on-site parking

Enjoy wine tasting from dozens of our world class local wineries,

live entertainment, delicious appetizers and non-alcohol beverages,

live and silent auctions with amazing items!

Renowned Local Artist, Joao de Brito is featured this year and will be there to discuss his work

Other local artists whose work will be available at auction include:

Mattie Leeds * Therese Basinger * Janet Lever-Wood * Musi * Kate Nolan

Advance Tickets are $25 before May 28th, $35 at the gate

Includes souvenir wine glass. Ticketing is limited, so order tickets now.

School age childcare is available for a nominal fee at BD Elementary, but you need to sign up.

All proceeds benefit the Bonny Doon Community School Foundation which supports the Bonny Doon School through special program funding.

Send check with attendee name, phone and address to:

BDCSF, PO Box 8089, Santa Cruz, CA 95061

Or call 831-457-8098 for credit card purchase or more info.

Effective Real Estate Sales for Web 2.0

Reality Magazine recently published an article describing the benefits of a group to which I belong called the Allen F. Hainge CyberStars. CyberStars includes 201 Realtors, both here in the States and abroad, who are at the top of their market and interested in conversing about the very latest technology that will help sell homes for the most amount of money in the least amount of time.

In the midst of Web 2.0--"the Internet’s progression of social-networking and media-sharing sites"--staying web-savvy for a Realtor no longer means simply having a website. Allen Hainge and his group are committed to finding the latest "technology tools," including the incorporation of digital video, podcasts, blogs and MySpace pages.

Because my fellow CyberStar members are "market leaders—the higher-power group" who are necessarily willing "to share ideas on how technology increases profit, and how we can make our Web sites better to contact buyers and sellers," my clients are truly the ones who benefit from this association.

To read more about how CyberStars got started and hear what other members have to say about the group, go to Techie Supernovae Explode in Real Estate Market

To take a look at my own website, go to www.LiveInSantaCruz.com

MEDIAN SANTA CRUZ SALES PRICE FOR APRIL NEARS RECORD: HIGH-END HOMES ARE ALL THE RAGE

While some say that the real estate "bubble" has burst and the number of foreclosures in Santa Cruz County continue to be relatively high, multi-million dollar homes continue to sell. The median sales price for April was $774,375--that's just 2% off of the record $789,250 from November of 2005 according to Jondi Gumz of the Santa Cruz Sentinel.

Six different residential properties sold for more than $2 million in April, demonstrating that "the money is out there" (Margaret Julien of David Lyng Real Estate) and people are still very willing to pay.

Bernadine Brumfield, a Santa Cruz real estate agent, believes that these high-end homes that have been appreciating for many years will continue to sell easily as baby boomers move into retirement.

To read the article in its entirety and to see which homes sold for more than $2 million, go to Buyers Snap Up $2 Million Homes

FED REFUSES TO LOWER INTEREST RATES FOR NOW

Almost one year ago the Fed set the interest rate on overnight loans at 5.25% in response to rising inflation rates. Today, not much has changed.

As of May 9th, the Fed has decided to keep the same interest rate of 5.25%, saying that inflation is still a "predominant policy concern." While many note that lack of job creation and the "meltdowns" of the housing and auto markets signal slow economic growth, the Fed contends that overall the economy is growing at a rate that continues to create inflation pressures.

Because of these mixed signals, and due to a lack of long-term evidence, the Fed has made it clear that it wants to keep its options open and maintain flexibility.

To read the New York Times article in its entirety, go to Fed Gives No Signal of Rate Shift.

HOUSES IN UNUSUAL PLACES!

GOVERNMENT PROGRAM HELPS FAMILIES STAY IN THEIR HOMES

WASHINGTON - More than 36,500 families have been able to stay in their homes and avoid foreclosure this year thanks to the U.S. Department of Housing and Urban Development's Federal Housing Administration (FHA) comprehensive lending relief measures. The FHA's Loss Mitigation Program gives lenders who provide FHA-insured mortgages the authority and responsibility to assist homeowners who have fallen into financial difficulties with their home mortgages.

"Owning a home is the American Dream, and the last thing we want is for families to see their dream turned into a nightmare. FHA lending relief measures continues to help families around the nation work through difficult times, stay in their homes and avoid foreclosure," said HUD Secretary Alphonso Jackson.

Since last October, the FHA Loss Mitigation Program has helped 36,512 families, who are behind on their mortgage payments, keep their homes. In Fiscal Year 2006, this program helped 75,000 families with FHA-insured loans continue to enjoy the benefits of homeownership. In total, there are currently nearly 4 million homeowners in FHA homes.

The potential loss of a home, due to unexpected events such as unemployment or illness, can be financially and personally devastating. But it can be avoided by taking the right steps. Under the FHA Loss Mitigation Program, lenders have the ability to offer borrowers a number of HUD-approved options for avoiding foreclosure, including:

• Special Forbearance: This option can include a temporary reduction or suspension of a mortgage payment until the borrower can reestablish financial stability, or a permanent revision in the payment amount to reflect a borrower's new and reduced financial status.
• Modifications: The lender can rewrite the mortgage note in order to roll delinquent amounts into the principal or extend the term of the loan to reduce monthly payments.
• Partial Claim: FHA's insurance fund makes a one-time payment to bring the mortgage current, which becomes an interest-free subordinate mortgage due when the insurance is terminated.
• Pre-Foreclosure Sale: The borrower avoids foreclosure by selling the property for its appraised value even if the proceeds are not enough to pay off the mortgage.
• Deed-in-Lieu of Foreclosure: This option is a negotiated settlement where the borrower deeds the house back to the lender, saving the borrower all of the credit ramifications of a foreclosure while also saving the government some legal costs.
  

For more information on how families with FHA-insured mortgages can avoid foreclosure, visit www.hud.gov/foreclosure/ or call 1-800-CALL-FHA.

Article courtesy of the Santa Cruz Association of Realtors.

THE DRAWBACKS OF MULTITASKING REVEALED

Although checking email while listening to your iPod and trying to study or talking on you cellphone with a hands-free headset and driving at the same time might seem save you valuable minutes throughout the day, New York Times columnist Steve Lohr says that recent studies reveal the opposite effect.

Vanderbilt University published findings last December that show the brain's ultimate loss of efficiency when trying to handle two tasks at once. Though the delays may be only seconds long, the difference is crucial when considering response time while driving at high speeds.

Oxford University recently completed a study demonstrating that young people have equal difficulty to older adults when it comes to remaining efficient while multitasking.

While there is a point at which multitasking creates an optimum work efficiency, more intense multitasking--constantly checking emails, answering every phone call--will ultimately lead to a loss in productivity.

To read the article in its entirety, please go to Slow Down, Brave Multitasker.

IS GOOGLE'S SHUTTLE SYSTEM AFFECTING REAL ESTATE DECISIONS?

Unlimited and free chef-prepared food, on-site car washes and haircuts, a climbing wall, two lap-pools and a volleyball court--these are the perks of working at Google. Now employees can add the most important benefit of all to the list: a free shuttle to and from work, complete with leather seats, Internet access and bike racks.

The shuttles make 132 trips every day, traveling from Google's headquarters in Mountain View to some 40 pick-up and drop-off locations as far away as Concord or Santa Cruz. Not only are the shuttle terribly convenient--they're also environmentally friendly. All of the buses run on biodiesel.

Aside from being a nice perk, the shuttle service gives Google that much more edge in the competitive world of Silicon Valley job recruiting. Some employees have admitted to turning down jobs at other major high-tech firms in favor of Google's transportation benefits.

Most interesting is the affect these shuttles are potentially having on the real estate market. Employees are actually finding housing in the Bay Area based on shuttle stop locations; entire Google communities seem to be springing up around these pick-up and drop-off points.

To read the article in its entirety, please go to Google's Buses Help Its Workers Beat the Rush.

IN CELEBRATION OF SHERRY McDERMOTT

Sherry McDermott, Bonny Doon resident and founder of Jordan House, passed away peacefully on February 28th after a seven year battle with cancer.

Sherry was a faithful member of the Bonny Doon Church, a Bible study leader, and a lover of all God's creation. She remains beloved by her family and many friends.

All of us who knew her both mourn our loss and celebrate her passing. We lost a dear friend from this life who went on to a better place.

For more information on Jordan House, a Christian care-giving organization for the terminally ill, please go here.

To read the entire article celebrating Sherry's life, please go here.

HIDDEN TAX BREAKS & THE PHONE-TAX REBATE

By Kevin McCormally

You can count on getting at least a $30 to $40 fatter tax refund this spring – or you'll owe that much less when you file – thanks to the government's effort to redress an error that has its roots in the 19th century.

At issue is a levy on long-distance telephone calls born in 1898 as a 1% luxury tax to help finance the Spanish-American War. Last year, the government conceded that collecting the tax was, well, illegal.

The problem was that tax applied to charges based on the time and distance of the call. Although your grandkids might not remember, you know that's the way things used to work. The farther away you called, the more you paid for each minute you talked. In recent years, though, the distance part of the equation has disappeared. And that's the rub.

Over the past few years, some big companies, including Home Depot and Hewlett-Packard, challenged the government and won case after case. Finally, the government gave up and hung up on the long-distance tax effective August 1, 2006. Uncle Sam promised refunds of money collected since March 1, 2003. (The IRS says the statute of limitations won't let it refund taxes collected before that date.)

How to Get Your Money

The IRS has come up with an easy way for most of us to claim a refund. You'll find a line in the payment sections of your tax return to claim your credit, so you get the benefit even if you don't itemize deductions. For those of you who don't file a return, the IRS has created a special form, the 1040EZ-T, to request a tax refund.

Don't want to plow through 41 months' worth of old phone bills? You can claim a standard credit based on the number of exemptions you take. A single person who claims one exemption gets $30, while a couple gets $40. A couple with one dependent child gets a $50 credit and couples with two or more children get $60 – the top credit allowed. The IRS says it came up with the figures based on telephone usage data, and that the amounts include interest back to the time the money was collected.

If you spent an average of more than $25 a month for long-distance service during the refund period, you can seek more than the standard credit. But you might decide it's not the worth the effort once you see the new Form 8913. Basically, you need to tote up the federal tax you paid on long-distance calls between March 2003 and August 2006, group the payments in three-month increments and then figure the interest you're due on each quarter's tax.

There's no one-size-fits-all refund for business owners. Businesses can use a formula that bases their credit on total phone charges during the refund period rather than the actual tax paid. For more details, visit the Telephone Tax Refunds section of the IRS website.

Hidden Tax Breaks

Although the telephone tax credit is easy to find on the tax forms, that's not the case for three tax savers that Congress revived in December – after the IRS sent the forms to the printer. These tax breaks were set to expire without action by lawmakers. You're affected if:

• You qualify to deduct state sales taxes (which you surely do if you itemize and live in a state that does not have its own income tax).
  
• You qualify to deduct college tuition paid during 2006.
  
• You qualify to claim the special $250 deduction for expenses paid for classroom materials by teachers and teachers' aides.

Although none of these breaks is mentioned on the forms, all are available for 2006. You can find information on how to claim your deductions at www.irs.gov or by calling 800-829-1040.

Reprinted with permission. All contents © 2007 The Kiplinger Washington Editors, Inc.

HOW TO CHOOSE ENERGY-EFFICIENT WINDOWS

Curious about the benefits of energy-efficient windows?

Learn all you need to know by going to http://frankmurphy.blogspot.com and clicking on the link for the Efficient Windows Collaboration.

CRUCIAL INFORMATION ABOUT THE NEW DAYLIGHT SAVINGS TIME

You may have heard about the change in Daylight Savings starting this year: DST will start three weeks earlier on March 11, 2007, and end one week later on November 4, 2007.

This could affect machines & computer programs that are set to coordinate time/date using Daylight Savings.

The first step is to ensure that your computer is prepared. For Windows XP users, click the below link to download and install the Daylight Savings patch:

http://www.microsoft.com/downloads/details.aspx?familyid=66F1420C-DF2D-400B-A8A9-EF9061A9A3CA&displaylang=en

Scheduling software, such as Microsoft Outlook, could also be affected.
If you use the calendar feature in Outlook, and have version 2000, 2002, or 2003, you will want to download and install the Time Zone Data Update Tool by using the below link:

http://www.microsoft.com/downloads/details.aspx?FamilyId=E343A233-B9C8-4652-9DD8-AE0F1AF62568&displaylang=en

You will also want to ensure that any fax machines that you use are changed to the correct time, as well as your digital phone at home, mobile phone, PDA, portable music player, programmable thermostat, digital camera, DVR, etc.

For other scheduling software, Smartphone's, & PDA's, check with the manufacturer to determine if you need to install updates to prepare for the new Daylight Savings rules.

To access accurate time and date information for anywhere in the world, add The World Clock to your list of "Favorites."

FORECLOSURES RISE IN SANTA CRUZ COUNTY

According to Jondi Gumz of the Santa Cruz Sentinel, foreclosures for 2007 have more than tripled from the same time period one year ago (from 11 to 41). Even local publications covering foreclosure activity have had to expand their page numbers in order to cover all the foreclosure-related activity! Training for real estate agents covering the handling of foreclosure transactions is a hot commodity in Santa Cruz now, too.

This new jump in foreclosure activity is not necessarily due to traditional causes such as personal, outside crises, however. Some investors who were planning to sell their homes have been caught in a cooling market unable to sell their property or cover the mortgage and taxes with rent payments. In other cases, people are involved in mortgages that require a rising income; and some bought houses they simply couldn't afford.

Whatever the cause, homeowners considering foreclosure are recommended to consult a tax professional; and County prosecutor William Atkinson warns people to watch out for foreclosure fraud operators.

To read the entire article, go to Foreclosures Jump In County

NATIONWIDE MARKET UPDATE: PRICES DROP AT THE END OF 2006

The last three months of 2006 saw home prices fall in over half of the country's biggest metropolitan areas, according to the National Association of Realtors (NAR). In addition, the number of homes sold fell in 40 states plus the District of Colombia. As prices and sales drop, the number of homes on the market rises. Is there any hope for the market in the near future?

NAR believes so, saying that it expects sales and prices to rise in the Spring. David Lereah, NAR's chief economist, says that "home sales are leveling at historically high levels." Data from the Office of Federal Housing Enterprise Oversight shows that prices were in fact rising overall in the third quarter of 2006.

To read the full article by Vikas Bajaj, go to Home Prices Fall In More Than Half of Nation's Biggest Markets

To find out more about specific market trends in Santa Cruz County and what you can do to get your home sold for the most money in the least amount of time, please contact me at 831-457-5550 or frank@frankmurphy.net

THE NEW FACE OF SURFING

Once the sport of "beach bums and bohemians," surfing has grown into as much of a venue for networking as golf or tennis. Surf schools worldwide are catering to the corporate elite. Even the real estate market has felt the effect of the surfing boom, with land that surrounds prime surf breaks quickly being bought up and developed.

Santa Cruz residents will remember well the days when being a surfer and having a career were incompatible. Now, surfing is not only a status symbol in the work place but an ideal sport for making business connections due to its long periods of downtime. Richard Schmidt used to give surf lessons in Santa Cruz on a part-time basis while he worked as a lifeguard. Now, his surf school takes trips to Costa Rica where his clients also enjoy yoga classes and an in-house masseuse. Surf Divas, a school based in La Jolla, hosts corporate clinics throughout the year; many of their clients are from Wall Street or the New York fashion industry.

To find out more about surfing's new image, international surf schools and vacation packages, read the full article by Matt Higgins: Surf's Up, and Upscale, as Sport Reverses Its Beach Bum Image

Year-End Real Estate Market Update

2006 v. 2005

Statistics shown are for Single Family Homes in Santa Cruz County

FED CONTINUES TO DEBATE INFLATION TARGET

This week marks one year since Ben Bernanke took over as chairman of the Federal Reserve Board, but the Fed has yet to act on his main proposal: "an explicit target for inflation."

Mr. Bernanke argues that a public commitment to an inflation target of 1 to 2 percent a year would be helpful to investors and boost consumer confidence.

His opponents, however, are wary of making changes while things are going well: despite a slight economic slowdown over the last year, wages have increased and unemployment continues to be low. There is also a concern that Mr. Bernanke's policy is too rigid and that a focus on inflation will overshadow the issue of unemployment.

Based on the cautious attitudes of the Fed's governors and staff, and the objections of Congress, Edmund Andrews of the New York Times predicts that "the Fed is unlikely to change gears this year."

To read the full article, go to: Fed Has Yet to Set Target on Inflation

MORTGAGE DEFAULTS RISE IN SANTA CRUZ COUNTY

According to Santa Cruz Sentinel staff writer Jondi Gumz, "mortgage defaults have been on the rise statewide since Fall 2005." Santa Cruz County is no exception. And as home appreciation slows down, homeowners in default will find it difficult to sell.

Gumz includes some interesting statistics:

• 452 default notices were sent to homeowners in Santa Cruz County in 2006, compared to 333 in 2005.
• 29 default notices have been mailed out to Santa Cruz County homeowners already this year, compared to 20 at this time in 2006.
• In 2006, 151 foreclosure sales took place in Santa Cruz and Monterey Counties. In 2005, the number was 39.
• 16 foreclosures have already taken place in Santa Cruz and Monterey Counties during the first two weeks of 2007

To read the full article, go to: "Mortgage Defaults Spike"

Some analysts predict that the large number of adjustable rate mortgages with artificially low introductory rates issued in the past few years will add significant numbers to the default rolls. Some borrowers will need to refinance to protect their property. Some will need to sell. If you are considering a sale to protect your equity or your credit, contact me at Frank@FrankMurphy.net for help with the selling process.

YOUR CELLPHONE'S SUPER SECRET POWERS

Most cellphone users have experienced the harsh reality of "you get what you pay for." The excitement of receiving your dirt-cheap, or even free, phone when you sign up for service wears off when you see the person sitting next to you at the meeting taking notes or checking e-mail on their new BlackBerry or Treo. Well, it turns out your little flip phone may be capable of more than meets the eye.

As Larry Magid of the New York Times discovered, the average cellphone user doesn't need to shell out hundreds of dollars in order to enjoy the benefits of a smartphone. Many inexpensive cellphones come with exciting built-in features such as note-taking applications, instant messaging and MP3 players. Make sure to ask your cellular carrier about the additional programs and services they can provide for your phone.

Your options go beyond your cellular carrier, too. It's now possible to access Gmail, get GPS navigation tools and even subscribe to blog feeds--all through your very own cellphone!

For more detailed information on these specialized (and often free) cellphone services, read the full article: Plain Cellphones Can Overachieve, With A Little Help

FED CHIEF GREENSPAN RETIRES: RATES RISE

February 1, 2006

WASHINGTON — In the last major piece of business for retiring Chairman Alan Greenspan, the Federal Reserve pushed borrowing costs to the highest point in nearly five years Tuesday and hinted another rate increase was possible.

Shortly after the Fed's announcement, the Senate — showing broad bipartisan support — approved on a voice vote Ben Bernanke's nomination to be the 14th chairman of the central bank.

Bernanke, 52, will be sworn in this morning in a private ceremony at the Fed's marble headquarters.

That will make the historic changing of the guard at the Fed complete.

Greenspan, 79, ends an 18 ½-year run, making him the second-longest-serving chairman of the central bank. He presided Tuesday over his 149th meeting of the Federal Open Market Committee (FOMC), the Fed panel that meets eight times a year to set interest rates.

It was his 1,124th Fed board meeting overall.

A standing ovation greeted Greenspan as he entered to preside for the last time at the long conference table. The group, as expected, raised interest rates again, boosting the federal-funds rate by a quarter percentage point to 4.50 percent.

To mark his last day, Greenspan, a die-hard sports fan, was given an old-fashioned baseball glove signed by the bank presidents. He also received his board chair with his name engraved on a brass plaque, and the flag that flew over Fed headquarters Tuesday.

In return, Greenspan gave a pep talk, urging Fed employees to keep up the good fight to protect the value of the dollar against the ravages of inflation.

"We have a very special mission," Greenspan told about 1,500 employees who filled the headquarters' two-story marble atrium.

"We are in charge of the nation's currency, and the central bank, because of that, is involved in everyone's daily lives. We are the guardians of their purchasing power," Greenspan said.

Although he will turn 80 in five weeks, Greenspan has no plans to retire.

He will return to what he did during a long career in private business, running his own economic-consulting firm, Greenspan Associates, in Washington.

But a little history was made on his last day at the Fed.

The famously secretive institution relented and allowed news photographers and television cameramen in for the first time at an FOMC meeting to record Greenspan's final session — a fitting tribute for someone who worked to make the central bank less secretive.

In opting to boost rates Tuesday, Fed policy-makers said "the expansion in economic activity appears solid" even though recent economic barometers "have been uneven."

Inflation, they said, remains a concern. "Elevated energy prices have the potential to add to inflation pressures."

In response to the Fed's move, commercial banks raised their prime lending rates — for certain credit cards, home-equity lines of credit and other loans — by a corresponding amount to 7.50 percent.

The increases left borrowing costs at their highest level in nearly five years.

Many economists believe the Fed probably will boost the funds rate at least one more time — to 4.75 percent — at its next meeting March 28, the first session Bernanke will lead.

A few, however, believe the funds rate could climb to 5.50 percent this year, a move some analysts think is necessary to keep inflation under control.

Greenspan turns over to Bernanke an economy that is in good shape but faces challenges.

Questions persist about whether the housing market will continue to gradually decline or even crash. No one knows whether foreigners will maintain a hearty appetite for investing in the United States and continue to finance ballooning budget and trade deficits. Energy prices pose another wild card.

"Greenspan's shoes are very large and difficult to fill. If anybody is up to the task, Ben Bernanke is the guy," said Charles Ballard, economics professor at Michigan State University.

Bernanke, chairman of the White House's Council of Economic Advisers, is a former Fed governor and economics professor.

He is considered one of the country's foremost economic thinkers and has written extensively about the Great Depression.

Copyright © 2006 The Seattle Times Company