Prop 60 Tax Base Transfers

While Santa Cruz County allows Prop 60 transfers of a qualifying property tax basis from one Santa Cruz County property to another, it does not accept transfers from outside the county. For example, you can not transfer your basis from San Mateo County into Santa Cruz County. You can however transfer it within San Mateo County or into one of the other counties which accept inter-county transfers. Please contact me at frank@frankmurphy.net if you would like to receive the "Prop 60 Tax Base" brochure prepared by the Santa Cruz County Assessor's Office for a list of counties which accepted transfers when this brochure was prepared. You need to check the current status with any county you intend to transfer into to be sure they still accept transfers.

I hope this information proves helpful for you.

And remember, if you need any information about any real estate issues I will be glad to help provide resources for that info.

ON PREDICTING THE REAL ESTATE MARKET

Jeff Schoenfield, my colleague and fellow member of the invitation only Allen Hainge CyberStars, offers this opinion about predicting the real estate market. I couldn’t agree more!

"The real question (whether you are a potential buyer or seller) of course is when will the market turn? While I don't have a crystal ball you can be assured of one thing: The turn of the market will NOT be announced by headlines in USA Today and other national and local publications stating 'Real Estate Market Bottom Reached - Now Time to Invest!'. Rather, the news reported will still be mainly negative even as the market turns. We also do know that prices are the best they've been in some time and there are bargains available. By the time the market actually turns and everybody knows about it the best values will be behind us and buyers will have missed their opportunity to get a true bargain."

Jeff Schoenfield
Broker/Owner
RE/MAX All Pro, Realtors, Inc.
Gatlinburg, TN
Jeff@Gatlinburg-Homes.com

Show Your Support: Please Join Us in the FLY THE FLAG Campaign

On Tuesday, September 11th, 2007, an American flag should be displayed outside every home, apartment, office, and store in the United States.

Every individual should make it their duty to display an American flag on this sixth anniversary of our country's worst tragedy. We do this in honor of those who lost their lives on 9/11, their families, friends, and loved ones who continue to endure the pain, and those who today are fighting at home and abroad to preserve our cherished freedoms.

In the days, weeks and months following 9/11, our country was bathed in American flags as citizens mourned the incredible losses and stood shoulder-to-shoulder against terrorism. Sadly, those flags have all but disappeared. Our patriotism pulled us through some tough times and it shouldn't take another attack to galvanize us in solidarity. Our American flag is the fabric of our country and together we can prevail over terrorism of all kinds.

Thank you for your participation.

WEEKLY STATS FOR SANTA CRUZ COUNTY SINCE JANUARY 1, 2007

COUNTRYWIDE ACKNOWLEDGES HOUSING MARKET WOES

On July 24th Countrywide Financial acknowledged that the housing market "might not begin recovering until 2009 because of a decline in house prices," and that even borrowers with good credit are starting to fall behind on their loans. This announcement triggered a sell-off in the stock market, and signals a shift toward a more skeptical view of the future of the housing market than that to which many executives have previously held. According to Vikas Bajaj of the New York Times, Angelo Mozilo, Countrywide's chairman and chief executive, said that "because of a large number of homes on the market, the housing sector would continue to suffer until sometime in 2008 and not begin recovering until 2009."

As a result of the downturn, major lenders such as Countrywide, Wells Fargo, and others have stopped offering risky sub-prime mortgages. But it isn't just sub-prime borrowers who are struggling with payments. Even "credit-worthy" customers are showing the potential to default as home prices fall. "Countrywide said about 5.4 percent of the home equity loans to customers with good credit that it held an interest in were past due at the end of June, up from 2.2 percent at the end of June 2006."

To read the article in its entirety and see detailed statistics, go to Top Lender Sees Mortgage Woes for ‘Good’ Risks

SANTA CRUZ COUNTY HOME SALES STATS

Santa Cruz County's median home price $757,000 in June
By JONDI GUMZ, Sentinel staff writer

SANTA CRUZ — Despite a real estate slowdown nationwide and the growing numbers of county homeowners missing their mortgage payments, one segment of the Santa Cruz housing market is buoyant: high-end homes.
Six homes in Santa Cruz County sold for more than $2 million in June, matching the number of $2 million-plus sales in April.

View a map of the six homes sold for more than $2 million in June.

Case in point: a 4,250-square-foot home with an ocean view and a wine cellar in the gated community of Monte Fiore in Scotts Valley sold for the listed price: $2.25 million. "There were three interested parties and it was more of a race," said Mark Oliverez, a real estate agent with Alain Pinel who represented the seller and the buyer.

In fact, of the 164 sales in June, 40 were for $1 million or more, a higher percentage than in May. The high-end market phenomenon gained attention last week in The New York Times, which reported that sales of homes priced at more than $1 million are up in Boston, New York and Miami.

In Santa Cruz County, affluent buyers are willing to pay higher prices for ocean-view homes.

June statistics

Single family homes
Sales: 164
Listings: 1,292
Unsold inventory index: 7.9 months
Median price: $757,000

Condos
Sales: 32
Listings: 289
Unsold inventory index: 9 months
Median price: $560,000

Source: Real Options Realty

The increasing number of high-end sales in Santa Cruz County is keeping the median home price high, at $757,000 in June, a barely perceptible dip from $760,000 in May. But the number of overall sales is down in comparison to the red-hot market of three years ago, when more than 250 homes sold in June. This year's June sales, 164, are the fewest since 2001, according to Gary Gangnes of Real Options Realty, who compiled the monthly statistics. The current housing inventory is at a 10-year high with 1,292 listings.

For those hoping more for-sale signs saying "reduced" would mean the median sales price would fall into the $600,000 range, it's just not happening. In many parts of the county, asking prices are high. The average listing price is more than $1 million in Aptos, Capitola, Davenport, Santa Cruz, Scotts Valley, Soquel, according to Gangnes, although he cautioned that listing prices do not reflect sales prices.

Sales of pricey homes rebound

April
Median sale price: $774,375
Number of sales: 128
Sales over $1 million: 35

May
Median sale price: $760,000
Number of sales: 147
Sales over $1 million: 27

June
Median sale price: $757,000
Number of sales: 164
Sales over $1 million: 40

Source: Real Options Realty

Ocean-view homes, and those within walking distance of the ocean are selling for more than $1 million, longtime agent Tony Aprile said. Patti Boe of American Dream Realty said she was too busy showing homes to have an extended conversation Friday. "I have seven escrows," said Boe, who was involved in two of the six $2 million-plus sales in June.

Kelley Trousdale, who sold a Rio del Mar home in June for $4.5 million, said high-end buyers tend to be people from the Central Valley with disposable income and a yen for a second home with a beachfront. Other agents said high-end buyers include local residents. The buyer of the Scotts Valley home was trading up from a property in Felton, but one of the other prospects was a New Yorker who had sold a business and wanted to move back to Santa Cruz.

Frank Murphy, who represented a buyer who paid $2.5 million for an ocean-view home on the Santa Cruz Westside on Refugio Road, said his clients lived in Santa Cruz but wanted acreage close to the city. Murphy also had a San Mateo prospect who has sold a business and was looking for the right location for a family compound. Two deals fell out of escrow when flaws in the property came to light, and the client ended up buying in Sebastopol.
That's typical for a high-end shopper.

"People can afford these homes and they don't want to settle or compromise," said Oliverez, using the word "cherry-picking" to describe the market. That's why Aprile went to the trouble of bringing in Erin Blackburn to "stage" the Refugio Road home, which was otherwise vacant.
"It's almost a requirement in this market," Aprile said. "When they see the furniture they tend to slow down"

Victoria Pendorf represented the Napa Valley buyer of 302 Cherry Ave. in Capitola, which sold for $3 million. She called the ocean view "amazing — you don't want to leave" The Napa Valley buyer is in the "pre-retirement" crowd, a demographic that could generate more high-end buyers.

The Silicon Valley tech rebound is another factor in the high-end market.
Oliverez mentioned a client who came from Arizona to work in high-tech and bought a $2.6 million home in Los Gatos. "You're not seeing layoffs, you're seeing hiring," he said. "Relocation buyers are out there"

Contact Jondi Gumz at jgumz@santacruzsentinel.com.
Copyright © Santa Cruz Sentinel. All rights reserved.

MEDIAN HOME PRICE FALLS BUT HIGH-END HOMES ARE STILL SELLING

While it may be good news to hear that the median home price for a single-family residence in Santa Cruz County dropped by 2% to $760,000 in May, the truth is that this price is still not affordable for most first-time buyers. Compounding the problem is the fact that an increase in foreclosures has led to no-income-verification, no-down payment mortgage options being "taken off the shelves."

Those who have the money "to pay cash or leverage their existing properties" are still in the game in Santa Cruz County, however. According to Gary Gangnes of Real Options Realty, 27 homes sold for more than $1 million in May and 6 of those sold for more than $2 million.

While the dip in median home price seems too little for those who need a mortgage, the news shines a ray of hope in unexpected places. According to Jondi Gumz of the Santa Cruz Sentinel, UCSC welcomes the price drop as it finds its junior faculty leaving town for more affordable housing. Faye Crosby, the chair of UCSC's academic senate, says the new median is great news for the university's recruiting efforts.

To read Jondi Gumz' article in its entirety and to see market statistics for Santa Cruz County for the month of May, go to Median Home Price Dips to $760,000.

SCAM WARNING: "DEED" MAILERS

District attorney: Discard deed mailers

By Jennifer Squires, Sentinel staff writer

The District Attorney's Office is advising homeowners that a rash of mailings to county residents this week offering deeds at a price is not a government-sanctioned solicitation.

The mailers, sent by the Washington, D.C.-based National Deed Service, offer homeowners a chance to buy copies of their property deeds for $59.50. The solicitation is not illegal, but could be deceptive, said Robin Gysin, the consumer affairs coordinator at the District Attorney's Office, adding the company is not affiliated with any governmental agency.

A property deed is the document that transfers ownership in a real estate transaction. Gysin suggests people who receive the mailer simply throw it away. "I'd probably rip it up or shred it," Gysin said.

Gysin said 15-20 people have contacted her this week reporting the mailing. None of them sent the company any money, she said. "I actually got one at home. They sent one to my house," Gysin said. The mailers have been reported across the country.

The company has collected property title information from the county Recorder's Office, which has all recorded documents on file. However, anyone can obtain copies of the documents at any time for about $12 at the county Recorder's Office and it's unnecessary to pay someone else for the information, according to the District Attorney's Office.

Gysin warned county residents to be wary of solicitations that arrive in the mail and asked they call her office at 454-2050 with questions.

Contact Jennifer Squires at mailto:jsquires@santacruzsentinel.com?subject=District.

HOPEFUL FED WON'T CUT RATES

The Dow Jones fell more than 80 points on June 5th after a widespread realization that there is "almost no chance" that the Fed will cut interest rates by the end of the year.

The Fed chairman, Ben Bernanke, said "that the Fed expected the economy to pull out of its current funk and weather the slowdown in the housing market."

While investors have recently been expecting a rate cut by the end of the year, leading economists are noting that the slowly strengthening economy gives the Fed little reason to buffer against "a worse-than-expected slowdown" for now.

To read Jeremy Peters' article in its entirety, go to Fed Dims Hopes For A Rate Cut

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.