Broker Blog

Instructions for life:  Following on the twenty point list that I found in my “Quotations” file, here is the second batch:

I N S T R U C T I O N S F O R L I F E (2nd bunch)

6. Don't let a little dispute injure a great friendship.

7. When you realize you've made a mistake, take immediate steps to correct it.

8. Spend some time alone.

9. Open your arms to change, but don't let go of your values.

10. Remember that silence is sometimes the best answer.

How the World Turns: We just spent a few days with one of Diane’s cousins from Sweden (along with her husband and son) introducing them to Northern California. We were enjoying the beautiful summer flowers in a garden in Carmel and Diane explained that we call that flower Impatiens. Her cousin replied, “that’s interesting, we call it Ambitious”.

The Housing and Economic Recovery Act of 2008: As you likely know, the President signed the Housing and Economic Recovery Act of 2008 on Wednesday of this week. NAR has a nice summary of the key provisions of the Act. Visit this link to review the key points.

A friend recently shared an analogy with me comparing the current housing cycle to the opera. An operatic heroine can die an excruciatingly slow death as her arias go on and on before she finally lets go and dies amid much applause and relief. So it is with this housing cycle, seeming to be experiencing a slow, moribund demise with intrigue and villains, injured bystanders, inept officials, etc., etc. But, great drama can provide catharsis, and perhaps we will see this in time as the housing and credit markets become more stable.

The Housing Act is attempting to address the past cycle that was over stimulated by a combination of cheap money and low credit standards. There remains a lot of “cleaning up” to do, and this Act will help some, but many believe that the current cycle may linger into 2010 – and we need to be prepared to deal in it.

Wine Country Group performance: Overall, our company performance in July, 2008 was slightly behind our sales in July, 2007, but well ahead of our performance in July, 2006. With the cost cuts that we have made over the past couple of years, we had a small profit for the month. Thanks to our many agents and staff who continue to work hard in a difficult market. The star office in the month was our Napa office which closed 19 units compared to 7 a year ago.

Affordability and Consumer Confidence: Certainly, with lower median prices and low interest rates, CAR’s First Time Buyer Affordability Index continues to improve. For the state, the Index for the 1st quarter of 2008 stands at 44 compared to 26 for the 1st quarter of 2007. For the Northern Wine Country region (Sonoma, Napa and Mendocino) the index stands at 39 compared to 24 a year ago. So it is a better time for well qualified first time homebuyers.

Last week, the Reuters/University of Michigan final index of consumer sentiment for the month unexpectedly rose from the lowest level in 28 years. The gauge increased to 61.2 from 56.4. The news on incomes was also on the rise. The proportion of people who expect their incomes to rise over the next six months increased to 14.2 percent from a record-low 13.1 percent in June, according to today's report. Records began in 1967. I am always encouraged when consumer confidence is on the rise!

I was recently shown a thirty five year chart of Mortgage Rate History based on 30 year fixed interest rates. The rate of 6.03 in May of 2008, was in the middle of the range that we have experienced since 2002, but it’s far better than the 18.45% which was the level in October, 1981. And, we were selling homes then! So there are reasons to be optimistic, and business to be done.

Closings: The following agents also enjoyed closings between 7/14 and 7/27: Michelle Delfino (Healdsburg); Tammy Owens (Sonoma); Mike Caselli (Sonoma): Nicki Rector (Healdsburg); Isaac Raboy (Sonoma); Constance Sharpe (Glen Ellen); Susan Irvine (Sonoma); Sheila Deignan (Sonoma) and Ann Foley (Sonoma). The following agents closed two sides during this period: Mari Johnson (Sonoma), and Robyn Makurak (Sonoma). Doug Del Fava and Susan Parker of our Kenwood office closed three transactions during this period. And, Frank Trozzo and David Barker, both in our Napa office, closed five sales each over this two week period. Diane Krause of our Sonoma office closed two sides during this period with a combined sales volume of $7,800,000. Well done, and congratulations to all!