RSS

Wondering what this little RSS orange insignia that's popping up everywhere is all about? Believe it or not, so was I? I found out that it’s called Really Simple Syndication. OK and what does that mean, you ask? It's gotta be something really technical right? No, it actually serves a very good purpose.

RSS solves a problem for people who regularly use the web. It allows you to easily stay informed by retrieving the latest content from the sites you are interested in. You save time by not needing to visit each site individually. You ensure your privacy, by not needing to join each site's email newsletter. Many news-related sites, blogs and other online publishers syndicate their content as an RSS Feed to whoever wants it. What the RSS button does (aka RSS Feed) is allows you to indicate that you like a particular blog or podcast, and would like to stay current with their content. By clicking on the RSS button you’ll indicate that you would like to stay apprised to the latest publications or broadcasts. It’s as simple as clicking the button and will be notified every time someone posts a new thought on your favorite blog or podcast!

So, click the RSS button off to the side of this blog!

Exactly what does the fed fund interest rate cut mean?

First Business - Anticipating the Cut
3 min - Aug 23, 2007
It's been highly anticipated, but exactly how could an interest rate cut impact the fast-falling mortgage market?

TOP BLOGS, ACCORDING TO CNET

With more than 14 million blogs in existence and another 80,000 being created each day, how is a person supposed to find the ones worth reading? Whenever I to research technology of any sort, I head over to CNet to check out their editorials and user reviews. Whether I'm shopping a color printer, digital camera, laptop or cell phone, I know I can always trust what they have to say. Last time I visited, I was a little surprised to find something entirely different...they are rating blogs that focus on technology. I thought you might be interested in their 100 choices because they could end up providing valuable information that you could use:

Top100 blogs according to CNet:

• 1080Eye
• Alice Hill's Real Tech News
• Apple Matters
• AppleInsider
• Ars Technica
• Between the Lines
• Beyond VC
• Boing Boing
• Burnham's Beat
• BusinessWeek's Blogspotting
• BusinessWeek's The Tech Beat
• BuzzMachine
• C:\PIRILLO.EXE
• Channel 9
• Cleantech Investing
• Cyberjournalist.net
• Dan Bricklin's Log
• Daring Fireball
• Declan McCullagh's Politech
• digg
• Doc Searls Weblog
• Engadget
• Fixyourthinking.com
• Freedom to Tinker
• Geek Culture
• Geek News Central
• Gizmodo
• GPS Review
• Groklaw
• Hypebot
• IEBlog
• iLounge
• Jeremy Zawodny's blog
• JKOnTheRun
• John Battelle's Searchblog
• Joi Ito's Web
• Jon's Radio
• Jonathan's Blog
• Justin's Guide
• Kim Cameron's Identity Weblog
• Kotaku
• Kottke.org
• Kuro5hin.org
• Lawrence Lessig
• Lifehacker
• Linux-Watch
• LonghornBlogs.com
• MacMinute
• Matt McAlister
• Micro Persuasion
• Microsoft Security Response Center
• Microsoft Watch from Mary Jo Foley
• Mini-Microsoft
• Molly
• MozillaZine
• Neowin.net
• New Media Musings
• O’Reilly Radar
• Om Malik on Broadband
• Ongoing
• PaidContent.org
• PCS Intel
• PhysOrg Weblog
• PressThink
• PVRblog
• Responsible Nanotechnology
• RFID Weblog
• Romenesko
• Schneier on Security
• Science Blog
• Scobleizer
• Scott Rosenberg’s Links & Comment
• Scripting News
• Search Engine Watch
• Seattle Post-Intelligencer Microsoft Blog
• Security Fix
• Seth Godin’s Blog
• Silicon Valley Watcher
• Slashdot
• Spamroll
• Sunbeltblog
• SunMink
• TaoSecurity
• Tech Confidential Blog
• TechCrunch
• Techdirt
• Tecosystems
• Terra Nova
• The Blog Herald
• The Gadgeteer
• The Internet Stock Blog
• The Mac Observer
• Things That … Make You Go Hmm
• Threadwatch.org
• TiVoBlog.com
• TVOver.net
• Venture Chronicles
• Vitalsecurity.org
• whatsnextblog
• XplanaZine

Market Condition Report - August 2007

MARKET CONDITION REPORT INLAND EMPIRE - WEST END August 2007

THIS YEAR LAST YEAR

Year to Date Sales

This Year	Last Year	Change	% Change
3,217	4,917	-1,700	-34.6%

The market is remaining rather constant relative to last year varying by a few percentage points either way. Last report was -35.3 %. This is generally in line with other areas surveyed. There are markets performing at a lower level than Inland Empire-West (Victor Valley -51%), but there is also Santa Barbara at +6%. This implies the current market condition varies according to area and price class. Note from the History of Median Sales Price the market peaked in terms of price in the late spring-early summer of 2006. MARKET QUICK LOOK

Indicator	Comment - Current Position and Movement	Buyer	Seller	Neutral
DEMAND	Increasing moderately-slower for CONDO. No trend.		-	-
SUPPLY	Rising slowly-near peak.		-	-
PERCENT SELLING (Market Efficiency)	Increased 2 points-too small to be meaningful. No trend.		-	-
DAYS ON MARKET	Steady.	-	-
MONTHS SUPPLY	Declining slowly-movement favorable to seller. No trend.		-	-
60 DAY ABSORB (Market Speed)	Very small positive movement. Not meaningful.		-	-
PRICES	List, Ask, Close Price-off moderately. Negative trend.		-	-
FUTURE PRICE INDICATOR	Expect declines to limit of $450K for SFR and $329K for CONDO.		-	-

In terms of current position the market is clearly favorable to the buyer. In terms of movement the market is moving toward the seller. However, this movement is very slight and tentative. No clear trends are evident except a tendency to declining prices (see graph History of Median Sales Price).

MCR TIP The 60 DAY ABSORB RATE measures market speed. Another way to think about the ABSORB RATE is the rate that listings are converted to closings in a 60 day period. The higher the ABSORB RATE, the quicker this conversion is occurring and the more the market is moving toward the seller. The opposite is true.

WORDS OF WISDOM Effective leadership is not about making speeches or being liked; leadership is defined by results not attributes (Peter Drucker).

Click here to view Market Condition Report.

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Fed Discount Window Cut

Fed Discount Window Cut
What does it mean for you?

The Federal Reserve has taken significant action in the last few weeks due to the credit crunch. And now they've made an unexpected move by cutting the discount window rate – which is great news. I'll get to that in a minute, but first let's look at recent events and understand what they mean.

Market movement
To date, over 120 mortgage companies have closed their doors due to reduced liquidity. The result: Borrowers who want to take out non-conforming loans have fewer, more expensive options.

Many media outlets have incorrectly added fuel to the fire by stating that mortgage lending has stopped altogether and that borrowers can't get a loan without a 20% down-payment. This is not true.

Conforming interest rates and loan programs, those backed by Fannie Mae and Freddie Mac, have not been significantly impacted by recent events. Even better, interest rates have come down from recent highs. While this is good news, the market is experiencing unprecedented volatility and changes could come at any time. Borrowers need to act swiftly and decisively in today's climate.

What did the Fed do?
Now back to the discount rate. This is the interest rate charged to commercial banks and other depository institutions on the loans they receive from their regional Federal Reserve Bank's lending facility. The Fed's decision to cut this rate provides stability in the financial markets and this can be good for all of us.

How exactly does this provide stability? Here's an example: Imagine you just wrecked your car and it requires $5,000 worth of repairs. You have a short-term need for cash to pay your mechanic. Even though you know you will eventually be reimbursed by your insurance company, you still need the cash now. So do you sell off stocks to get the cash, or tap into an equity line of credit? Most likely, you draw from that line of credit rather than liquidating a long-term investment.

This is what the banks are facing in today's liquidity crisis. And Bernanke's move helps them avoid long-term damage by supplying access to short-term cash.

It's important to note that the discount rate is different than the Fed Funds Rate, which directly impacts interest rates that you pay for Home Equity Lines of Credit, credit cards, and automobile loans. Most importantly, the discount window rate cut does not directly impact mortgage rates.

What should you do now?
Information, knowledge, and expertise are the building blocks of sound financial decision making. If you are considering financing or are in the process of financing a home, you should tap into the resources of a skilled mortgage professional. I strongly encourage you to contact me as soon as possible. I would welcome the chance to help you navigate these choppy waters.

The New Shift In Housing Trends

My Buyer's Agent has had 5 clients in the past 2 months that she placed in lease properties. Normally, we might lease 3-5 properties a year. People just can't qualify to buy with the stricter lending criteria and the fewer loan products out there to accommodate the borrower with credit challenges.

Economic Focus Volume 11, Issue 29, For the week of August 13, 2007 wrote this insightftful article:

The rush to home ownership over the past decade has created a natural rise in rental vacancy rates. Exotic mortgage products created a wave of homebuyers who would not otherwise have qualified. This rapid shift in population significantly impacted the rental market leaving behind higher than usual vacancies.

As the housing market cools there is an increasing household shift back to rentals, creating a growing inventory of new and existing homes on the market. The residential rental market is a natural destination for these displaced households, so there is little surprise that rental vacancies improved over this past month.

This movement of households is further supported by the fall in homeownership which reached 66.2% in the second quarter, its lowest level since the 2nd Quarter of 2003.

First was the shift from rentals to housing, fueled by creative and exotic financing. Then a shift back to rentals, fueled by a tightening in credit and underwriting standards.

Just as a great rush to homeownership weakened the rental housing market while driving appreciation in home prices; we now see the flight from homeownership depressing the housing market and starting to create a premium on rental housing.

The creation of new qualified households has not been able to fill the vacuum created by the shift in housing. Additionally, a trend toward extended family units and young family members staying in the nest contributed to a 1st Quarter 2007 record high of a 2.8% vacancy in existing homes.

This movement in the market is creating exceptional opportunities for those who anticipate it and are brave enough to act. You know the old adage: buy low and sell high. This time around the signals are easier to read. There is ample opportunity for those willing to take the risk.

I'd like your feedback. Would you like to see a list of available local leases posted on this blog? Let me hear from you.