Sunday

A LIBOR Follow Up

What is LIBOR

Wiki: The London Interbank Offered Rate is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market. Most variable mortgages and short term loans are based on this rate. If it goes up your ARM follows.

What it means to you

The LIBOR rates have almost doubled recently, reflecting the fact that banks perceived so much risk. They didnt know whether the bank they loaned to would be there next week, so rates shot up fast. Now we are watching some encouraging trends, bare beginnings but still positive.

Key short-term lending rates fell again Tuesday. Libor, for three-month dollar-denominated loans fell to 4.63% from 4.72% while one-month rate declined to 4.46% from 4.56%. it has to mean that banks are begining to see a little less risk and that is th efirst step towards loosening credit.

More Good News

California: Notices of default filings, the first step of a foreclosure process -- fell 61.8 percent in September compared to August and fell 36.4 percent compared to the same month last year, reports data company ForeclosureRadar.com.( via MarketWatch)

The Feds Plan begins to Kick In
  1. Oct 27th - The fed's commercial paper facility will begin.
  2. Nov - The TARP program will begin buying toxic mortgage backed securities. The banks have already received 250 billion in fresh capital and after the TARP auctions, bank balance sheets will begin to look a lot better.
Once credit is looser and the financial system is on a better track, we hope that the housing crises will begin to see an early dawn. No doubt, there is much work in front of us and we are certainly victims to headline events, but maybe we are seeing the early signs of stabilization. Keep your fingers crossed.


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Howard Bell
www.yourpropertypath.com
A web site of over 450 articles related to real estate focused primarily on property management.

Your Property PathSF
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Wednesday

North Beach: Its Official - No New Restaurants


The Board of Supervisors Ban All New North Beach Eateries

I love North Beach and the neighborhhood has changed from one that had local character to one that was losing it. Still, restaurants are local flavor and they provide lots of jobs. I also miss the butcher and the local deli's that no longer can make it, but legislation cant bring them back. They're not there because rents are so high that small business is priced out. This is a city wide problem. Having less restaurant development in North Beach will do nothing to bring back a cobbler. A rent roll back will....but I dont see that happening.

Polk street is often pointed to as a area that has developed a good restaurant and upscale business climate while retaining its older business environment too. Its a better mix, I agree, but its because parts of Polk street havent gone through the high priced real estate boom that North Beach did. Thats the cause and it wont be fixed by banning restaurants. They are the local, living art of San Francisco.

Exceptions: If their was a restaurant in the space a new one can open up in its place, unless its been empty for 18 months. Then it cannot be a new restaurant.

I might point out that Union street has a similar ban and it hasnt brought back the cobbler or the butcher....in fact its commercial scene has looked healthier in the past.

Thanks for Reading

Howard Bell

www.yourpropertypath.com


A web site of over 450 articles related to real estate focused primarily on property management.

Your Property PathSF

http://yourpropertypath.blogspot.com/

Trade talk for the San Francisco real estate industry. Your source for property management tips, policies and market trends.

Your Property Path Amazon Store


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San Francisco: Good Indicators for Home Prices

Most of the country is having quite a lot of trouble, but San Francisco has held up. We have a strong diversified work environment and we balanced the budget. All of these things and a good strong tech industry has helped keep us above the fray.

One good indicator of home prices is the County Assessors office. The Assessor Recorder is the department that determines the property tax base. Phil Tang's office has received 1673 requests for lower property taxes based on reduced property values. 810 of those requests did get a lower appraisal by about $137,000. Thats an 11.5% drop in the value of those homes.

Most of the reductions came in the newer developments in SOMA, Potrero, parts of the Mission and Mission Bay. The Schiller index gives us an 12% drop in home prices for San Francisco, corroborating the city Assessor Recorders numbers.

In this environment I have to say that an 11-12% drop in values is somewhat of a relief. Lets hope that the Federal plan will keep those losses to low and recoverable numbers.

Thanks for Reading

Howard Bell

www.yourpropertypath.com

A web site of over 450 articles related to real estate focused primarily on property management.

Your Property PathSF

http://yourpropertypath.blogspot.com/

Trade talk for the San Francisco real estate industry. Your source for property management tips, policies and market trends.

Your Property Path Amazon Store

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Thursday

Shorter-Term ARMs Fall Slightly

McLean, VA Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® in which the 30-year fixed-rate mortgage (FRM) averaged 6.10 percent with an average 0.6 point for the week ending October 2, 2008, up from last week when it averaged 6.09 percent. Last year at this time, the 30-year FRM averaged 6.37 percent.

30-year fixed-rate mortgage: Averaged 6.10 percent with an average 0.6 point for the week ending October 2, 2008, up from last week when it averaged 6.09 percent. Last year at this time, the 30-year FRM averaged 6.37 percent.

The 15-year fixed-rate mortgage: Averaged 5.78 percent with an average 0.6 point, up from last week when it averaged 5.77 percent. A year ago at this time, the 15-year FRM averaged 6.03 percent.

Five-year Treasury-indexed adjustable-rate mortgages ARMs: Averaged 6.00 percent this week, with an average 0.6 point, down from last week when it averaged 6.02 percent.A year ago, the 5-year ARM averaged 6.11 percent.

One-year Treasury-indexed ARMs: Averaged 5.12 percent this week with an average 0.5 point, downfrom last week when it averaged 5.16 percent. At this time last year, the 1-year ARM averaged 5.58 percent.

Commentary From the Freddie Mac Site:

"Average mortgage rates were nearly unchanged during the past week, leaving rates above the levels of two weeks ago," said Frank Nothaft, Freddie Mac vice president and chief economist. "Reflecting the rate uptick from two weeks ago, the Mortgage Bankers Association reported that loan applications were down 23 percent last week.

Thanks for Reading

Howard Bell

www.yourpropertypath.com

A web site of over 450 articles related to real estate focused primarily on property management.

Your Property Path New Brief

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Wednesday

Russian Hill: Greening the Broadway Tunnel


This is a very good project that has been fully supported by the Russian Hill Neighbors Association, a nonprofit neighborhood organization established in 1981 to encourage friendly association among Russian Hill neighbors and merchants andto respond to neighborhood concerns.
Greening the Broadway Tunnel-West was a $660k DPW project. The City awarded us $325k, but the funds were retracted because of major budget cuts. Some of that money has now been restored (see above).

Greening: ($299k) -- planting twenty-eight trees up the sides of Broadway (just outside of and rising with the tunnel retaining walls), four planter trees on the pedestrian bridge, and fourteen trees in the median strip.

Cable Car Square on Hyde Street ($174k) -- A pedestrian pathway will lead from the SE corner of Broadway and Larkin (starting at Helen Wills Park) to an attractive square at the Hyde Street Cable Car stop. The pathway and square would be demarcated by special paving.

Traditional Ornamental Street Lamps ($187k) -- will help demarcate Broadway as an historic, grand boulevard.

Donations can be made through PayPal or sent to RHN at the following address:

Judy Junghans, Treasurer
RUSSIAN HILL NEIGHBORS
1819 Polk St. #221
San Francisco, CA 94109
Voice 415-267-0575

Thanks for Reading
Howard Bell

www.yourpropertypath.com
A web site of over 450 articles related to real estate focused primarily on property management.

Your Property Path New Brief
http://wwwyourpropertypath.blogspot.com/
Snap News updates real estate markets and all things of interest to property owners and real estate professionals.

Your Property Path Amazon Store
http://astore.amazon.com/yourpropertypath20-20

Hand picked from amazons huge selection