CAR NEWSLINE

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C.A.R. Newsline, your weekly industry news update, is brought to you

by the CALIFORNIA ASSOCIATION OF REALTORS®

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Wednesday, May 07, 2008

In this Issue:
* EXPO EARLY BIRD REGISTRATION OPENS MAY 8
* CALIFORNIA EMPLOYMENT INDICATOR DECLINES ON CONSTRUCTION SLOWDOWN
* NEW CAR.ORG SET TO LAUNCH MAY 27, BETA VERSION DEBUTS MAY 12
* CASH-OUT REFINANCE SHARES FALL TO LOWEST LEVEL IN FOUR YEARS
* 2009 C.A.R. COMMITTEE SELECTION PROCESS UNDERWAY
* PENDING HOME SALES DOWN 1 PERCENT IN MARCH
* YOUNG PROFESSIONALS NETWORK HOLDS FIRST CALIFORNIA EVENT JUNE 5
* SHOWCASE AND LEGISLATIVE DAY REGISTRATION NOW OPEN; H.A.F. GOLF CLASSIC SET FOR JUNE 2
* FANNIE MAE ANNOUNCES THEIR "KEYS TO RECOVERY"
* C.A.R. GREEN TIP OF THE WEEK: KILL A WATT AND SAVE A BUCK

EXPO EARLY BIRD REGISTRATION OPENS MAY 8 Early bird registration opens Thursday, May 8 for all C.A.R. members for this year's CALIFORNIA REALTOR® EXPO 2008 running October 14-16 at the Long Beach Convention Center in Long Beach. Take advantage of discounted registration fees for Tech Tuesday by registering now for this year's EXPO, the state's largest real estate trade show.

Tech Tuesday is a paid event preceding EXPO on Tuesday, Oct. 14,nd includes a full day packed with educational seminars focused on the interconnection between technology and real estate. This premier event is where REALTORS® can obtain hands-on training on how to use the latest tools they need to boost their bottom line.

This year's Tech Tuesday luncheon is titled "The Rise of the Machine: How Technology is Changing the Buying and Selling of Real Estate," and features guest speaker Ed Dilworth, director of e-communications solutions, Cambell-Ewald.

CALIFORNIA REALTOR® EXPO 2008 is free to all C.A.R. members, offering two days of educational seminars, networking opportunities, and an industry trade show, where exhibitors will offer the latest information on products and services. Early bird registration for EXPO runs through June 20. To register, go to www.realtorexpo.org and click on "register."

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CALIFORNIA EMPLOYMENT INDICATOR DECLINES ON CONSTRUCTION SLOWDOWN A decline in construction spending on both residential and nonresidential structures has caused California's Index of Leading Employment Indicator to drop from 103.2 in the first quarter of 2008 to 98.8 in the second quarter, bringing the index down below the critical value of 100 for the first time in five years, according to new data from the Anderson Center for Economic Research.
More info: http://www1.chapman.edu/argyros/acer/CAEmploymentIndicator_2008Q2.pdf
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NEW CAR.ORG SET TO LAUNCH MAY 27, BETA VERSION DEBUTS MAY 12 C.A.R. is preparing for the launch on May 27 of its redesigned and interactive Web site that will serve as a one-stop portal to Association and industry news, events, and services, as well as vital tools members need to be successful in today's challenging market.

As the Association's official Web site, the new car.org will showcase many essential online features, including intuitive navigation; customized content link capabilities; and sophisticated search functionality; as well as destinations familiar to current users including Legal, Economics, Member Center, Newsstand, and C.A.R. blogs, videos and podcasts. The new car.org also will feature an enhanced registration system and personalized member profiles; a user-friendly calendar that will allow you to view C.A.R. meetings and industry events at a glance; section-specific search capabilities, and much more.

On Monday, May 12, C.A.R. will roll out a beta version of the completely redesigned and enhanced new car.org Web site to members. A link will be provided on the current car.org home page that will allow you to preview the beta version. We invite you to get acquainted with the look and feel of the new site and provide us with feedback by clicking on the "contact us" link in footer of each page.

Meanwhile, C.A.R. members also should remain on the lookout for an e-mail from the Association welcoming you to the new car.org Web site, along with other crucial registration and required password and username information. You will not be able to access any member benefits areas, including WINFoms®, without registering.
More info: http://www.car.org/index.php?id=Mzg0Mzc=
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CASH-OUT REFINANCE SHARES FALL TO LOWEST LEVEL IN FOUR YEARS The dollar volume of equity cashed out during the first quarter of 2008 declined to $29 billion with only 56 percent of Freddie Mac-owned refinanced loans including a 5 percent increase above original mortgage balances, compared with the revised 77 percent in the fourth quarter of 2007, the smallest percentage of cash-out refinancing activity since the second quarter of 2004, according to Freddie Mac's recent quarterly refinance review.

"A tightening of mortgage underwriting standards throughout the lending industry coupled with declining home values across much of the nation has curtailed the amount of home equity cashed out by homeowners," said Frank Nothaft, Freddie Mac vice president and chief economist.

More info: http://www.freddiemac.com/news/archives/rates/2008/1qupb08.html
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* * * C.A.R. Member Advantage Partner * * *
C.A.R. has endorsed Linsin, Sherman Associates for C.A.R.'s endorsed Errors and Omissions program. Linsin, Sherman Associates has specialized in providing California-based Real Estate Brokerage firms with their E & O Insurance for over 15 years.
http://mailer.carwebs.org/news/Newsline/passurl.asp?ad=178&adsid=311
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2009 C.A.R. COMMITTEE SELECTION PROCESS UNDERWAY C.A.R. has begun the 2009 selection process for standing, special, and advisory Association committees and is now seeking member recommendations for these positions. C.A.R. member input is a critical component of the committee selection process and we welcome your recommendations in helping us form the 2009 committee leadership.

To submit a recommendation for yourself or another member to serve as either chair, vice chair, or member on any of the available C.A.R. committees, please visit http://www.car.org/index.php?id=MzA2Nzk=.
More info: http://www.car.org/index.php?id=MzA2Nzk=
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PENDING HOME SALES DOWN 1 PERCENT IN MARCH Sales of existing home sales in March declined 1 percent to 83 units from 83.8 in February, a 20.1 percent decline from March 2007 at 103.9, according to NAR's recent Pending Home Sales Index.

NAR reports that agents across the country are reporting an up-tick in interest among buyers, but actual home sales remain hampered by tougher mortgage lending guidelines.

"The extent of an expected recovery hinges on better access to affordable loans," said Lawrence Yun, NAR chief economist. "Things are beginning to improve, but the availability of affordable mortgages is uneven around the country and sometimes within metropolitan areas. As anticipated, we continue to look for a soft first half of the year, for both housing and the economy, before notable improvements in the second half. Some time is needed for FHA and new conforming jumbo loans to become widely available."
More info: http://www.realtor.org/press_room/news_releases/2008/soft_existing_homesales_rise_midsummer
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YOUNG PROFESSIONALS NETWORK HOLDS FIRST CALIFORNIA EVENT JUNE 5 The Young Professionals Network (YPN), a special REALTOR® networking group for members 40 and under, will hold its first networking session in California on Thursday, June 5 from 5:30 p.m. to 7 p.m. at Mason's Restaurant in Sacramento, overlapping with the C.A.R. REALTOR® Showcase and C.A.R. business meetings taking place June 4-5 at the Sacramento Convention Center.

Mason's restaurant is located at 1116 15th Street in Sacramento. Space is limited for this event. Please RSVP to carmenp@car.org by June 2. To learn more about YPN or to join, visit www.realtor.org/ypn.
More info: http://www.realtor.org/ypn
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SHOWCASE AND LEGISLATIVE DAY REGISTRATION NOW OPEN; H.A.F. GOLF CLASSIC SET FOR JUNE 2 Attendee registration for C.A.R.'s third annual California REALTOR® Showcase and Legislative Day opened April 9. Taking place at the Sacramento Convention Center June 4-5, the free Showcase will feature numerous exhibit booths to help REALTORS® stay informed about the latest real estate products and services.

C.A.R.'s 2008 Legislative Day also will be held on Wednesday, June 4. Legislative Day provides REALTORS® from across California an opportunity to meet with their state legislators to discuss the issues that affect the real estate industry the most. Speakers include State Sen. Darrell Steinberg, President Pro Tem Elect, and Assembly Minority Leader Mike Villines. For more information about Legislative Day, go to http://www.car.org/index.php?id=MzA0NzQ,

To register for Showcase and Legislative Day, please visit www.car.org/showcase.

The Third Annual C.A.R. Housing Affordability Fund Golf Classic will be held on Monday, June 2 at the Morgan Creek Golf Club in Sacramento, just prior to C.A.R.'s Showcase and Legislative Day, beginning June 4. The golf tournament is open to the public and all proceeds will support the C.A.R.H.A.F. For more information about sponsorships, fees, or to download a registration form, please visit www.carhaf.org or contact Monica Rodriguez at(213) 739-8380 or monicar@car.org.
More info: http://www.car.org/showcase
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FANNIE MAE ANNOUNCES THEIR "KEYS TO RECOVERY"
C.A.R. Leadership has long supported increasing Fannie Mae's loan limits in high-cost areas such as California. C.A.R. also supports Fannie's efforts in ensuring that homeowners and homebuyers in high-cost areas are afforded an opportunity to have access to safe and affordable financing options. We will continue to work with and support Fannie Mae as it begins implementing the increased loan limits throughout the high-cost areas in California.

Fannie Mae President and CEO Daniel Mudd yesterday announced the company's "Keys to Recovery." Under the new plan, Fannie Mae will begin purchasing mortgage backed securities (MBS) comprised of the new conforming jumbo loans. Because Fannie Mae is required to separate the new conforming jumbo loans from conventional conforming loans (loans below $417,000) into separate MBS, the interest rate spread between the two products has varied between 70 basis points and 120 basis points. It is hoped that this action will bring the new conforming jumbo loan's interest rates at or just above those of conventional loans.

Additionally, Fannie Mae said it plans to refinance Fannie Mae-owned mortgages in certain circumstances even when the borrower is "underwater" on the loan.

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C.A.R. GREEN TIP OF THE WEEK: KILL A WATT AND SAVE A BUCK Your office probably has machines or plugs that "suck" electricity or use electricity on a constant basis with no benefit to the company, i.e., printers, chargers for portable devices, etc. One way to identify these amperage-sucking "vampires" is to connect these devices to the Kill-a-WattTM Electricity Usage Monitor (retails for approximately $24).

The Kill-a-WattTM unit's large LCD display counts consumption by the kilowatt-hour, the same as your local utility. You can calculate your electrical expenses by the day, week, month, or year. You'll know if it's time for a new refrigerator in the office break room or if that old air conditioner is cost-efficient. Available from Amazon.com or other online vendors.

C.A.R.'s "Green Tips" are a new feature of "C.A.R. Newsline" and are part of the Association's effort to raise member awareness about environmentally sound practices and offer REALTORS® ideas for greening their business practices and better serving their green-minded consumers. For more green real-estate-related tips and discussion, visit C.A.R.'s green blog: http://www.car.org/blogs/index.php
More info: http://www.car.org/blogs/index.php.
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Calif. median home price - March 08: $413,980(Source: C.A.R.) Calif. highest median home price by C.A.R. region February 08: Santa Barbara So. Coast $1,140,000 (Source: C.A.R.) Calif. lowest median home price by C.A.R. region February 08: High Desert $210,66-(Source: C.A.R.) Calif. First-time Buyer Affordability Index - Third Quarter 07: 33 percent
(Source: C.A.R.)
Mortgage rates - week ending 05/1/08
30-yr. fixed: 6.06% Fees/points: 0.5%
15-yr. fixed: 5.59% Fees/points: 0.5%
1-yr. adjustable: 5.29 % Fees/points: 0.6% (Source: Freddie Mac)

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The CALIFORNIA ASSOCIATION OF REALTORS® is a trade association
representing nearly 200,000 REALTORS® statewide.

Edited by Mark Giberson, markg@car.org

Executive offices: 525 South Virgil Ave., Los Angeles CA 90020
Phone (213) 739-8200; fax (213) 480-7724
Legislative offices: 980 Ninth St., #1430, Sacramento CA 95814
Phone 916-492-5200; fax 916-444-2033

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