March 2, 2009

• Gold reigns atop Great Divide
• Renters Lose Edge on Home Owners
• Raiding your 401K to Finance/Refinance
• 5%, 10% and 15% down, YES WE CAN!


Active Listings Number
Atherton 34
Menlo Park 102
Woodside 41
Portola Valley 20
Palo Alto 122
Los Altos 80
Los Altos Hills 44
Mountain View 83
Sunnyvale 144
Total 670


Pending Sales Number
Atherton 2
Menlo Park 29
Woodside 6
Portola Valley 5
Palo Alto 22
Los Altos 19
Los Altos Hills 2
Mountain View 16
Sunnyvale 59
Total 160

Sold Number
Atherton 0
Menlo Park 7
Woodside 0
Portola Valley 0
Palo Alto 4
Los Altos 3
Los Altos Hills 0
Mountain View 3
Sunnyvale 6
Total 23

The gold market continues to be the place for “fright money” to seek a haven of psychological security. Analysts are looking at $2000 as a target. With all the fright being generated many analysts are failing to point out that the offshore investor is now looking at the US as their Haven of Safety. The big news is that real estate is now becoming the investment of choice for investors both here and offshore. With the stock market hitting new lows, the place to put cash is limited.

The big news is that “renters” have lost the edge on “homeowners”. The relative cost of owning a home versus renting is now in the homeowners favor. Over the past 18 years, the after tax benefit of owning versus renting has favored renters. Now after 2 years of rapid home price depreciation the hoe owner is back on the plus side. What have also generated this favorable ration have been interest rates.

Raiding the 401 K plan has now been mentioned as a source of finance money, which I stated months ago. Check this out before you refinance. It can save you money and allow you to make money off your mortgage deductions.

FHA loans are available for 3.5% down. Buyers of homes up to $440,000 can buy with 5% down. Loans at $810,000 can be obtained with 10% down and at $2,350,000 15% down. Loans of up to $417,000 are priced aggressively at the high end of 4%. Loans from $417,000 to $625,500 are mid-priced in the low 5% range. Loans from $625,501 to $729,750 are TO BE PRICED HOPEFULLY SOON. Loans from $729,751 + range are priced from 5% to low 6’s% based upon terms. What it all means that there is money out there for home purchases.