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You’ve probably seen the Hyundai ads that promise new car buyers the opportunity to return their cars should they become unemployed within twelve months of making the purchase. Brilliant marketing, truly, because it cuts to the heart of the matter: consumer confidence is low, and even people who haven’t been laid off are afraid that they’re next. The result of Hyundai putting people’s biggest fears out in the open, and offering a plan to calm that anxiety? A whopping 14% increase in sales since the campaign began.

One of the economic forecasts that slid through my email last week had the headline: “90% employment!”  to remind everyone that most Americans still have jobs. Gary Ryness says in today’s interview that the sense of gloom is so pervasive and consumer confidence so low that that the people who have jobs—even secure jobs– are behaving in the same way as the people who have been laid off.

Whether you’re looking at a new home, a resale or a foreclosure, homebuying doesn’t have that same guarantee. So everyone is waiting for a sign, some signal that it’s safe to make a move. According to Gary Ryness, there are about half a million Californians waiting right now. Half a million people who have the means but not the confidence. When that group gets the sign that it’s safe to come back into the market, what’s going to happen to prices then?

This profound and prolonged recession has created historic shortfalls in permitting and construction on one side; enormous pent up demand on the other.  In a state that is used to earthquakes, think of this as a tectonic plate movement on its way.

Spring is home buying season and, even with the economy in its current state of disarray, this year is no exception. A bounce in home sales was front page news on last Sunday’s San Francisco Chronicle, citing that a large number of active buyers are purchasing their first home.

First-time buyers will find that a home purchase is a complex process—one riddled with potential pitfalls.  The Real Story has compiled a list of six common errors and how to avoid them.

Not making a list of your objectives—and sticking to it. Why are you buying a home? To be close to work? To live in a good school district? Because you want to put down roots? Because you need a change? Write down what you need, what you want, what would be nice but is not necessary, and how much you can afford. There’s usually no shortage of advice for buyers—from friends and family, from realtors, from neighbors and co-workers. That’s why it’s important to write down YOUR objectives and make sure the homes you consider satisfy them. In the end, you’re the one who has to live in the home you buy, so be sure it meets your needs.

Not setting a budget. Buying a home shouldn’t infringe upon your ability to save or to enjoy your life. Experts say your total monthly debts, including your mortgage, should be less than 36% of your total income. Be sure to work with your mortgage broker or use an online calculator to establish a price range that won’t leave you strapped. Then, get a letter of prequalification from a mortgage lender.

Not working with a trusted real estate professional. A multitude of transactions are involved in a property sale. Make sure you have professional help to guide you through and represent your interests in the transaction. Interview several licensed realtors and see who you have a good rapport with. Ask for references and check them. Make sure the realtor has experience in the area you want to live in. You should feel confident to speak candidly and share your personal financial information (withholding such information will impede the realtor’s ability to serve your best interests). Make sure your realtor clearly understands your needs and your budget.

Not keeping your emotions in check. Finding a home is much like falling in love: you somehow know when it’s right. But don’t let your emotions carry you away. Make sure the house meets your needs and is priced right. You should always be prepared to lose the home you think you love if the price is wrong or the inspection turns up a major defect.

Not having the home professionally inspected. A home may look great, but who knows what’s lurking behind the walls. Termites? Frayed wiring? Asbestos? An inspection by an independent (not recommended by your realtor) professional is a must and should be a contingency for the sale. Make sure the inspection includes electrical, heating and air condition systems, plumbing, roof, walls, foundation/structure, drainage, the garage and basement. Other items to check:  termites, radon, asbestos, mold and lead.

Not checking the neighborhood at various times of the day. A home might look peaceful and charming at 10 a.m., but be the center of a huge traffic snarl during commute hours. Once you find a home you’re interested in, check out the neighborhood on various days and times.

So be prepared, be patient, and get out there and look around.  Perhaps the biggest mistake is to let this time of unprecedented low prices and interest rates slip through your fingers.

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So how much has this recession cost you, in terms of home value? The good news is that the overall decline in home value only effects you if you’re trying to sell your home today. According to Gary Ryness, whose Ryness Report has been tracking new home sales and prices for the last thirty years, the markets that have held their values the best are the ones in which there is a restricted supply.

Which might those be? In the Bay Area, we’re talking about San Francisco, the Peninsula, Santa Clara and Central Alameda county. Homes in those areas are seeing the least change in the amount of home value. So those dire headlines about a 30% reduction in home value? They aren’t talking about you.

The areas that have built up the fastest, and seen the greatest increases in pricing in the last decade—areas like East Contra Costa and Solano counties—are the hardest hit in this recession. The new programs being enacted by the Federal government will actually stop home prices from sliding in these areas by resetting mortgages for existing homeowners. With a mortgage reset, more people stay in their homes, and the number of foreclosures finally stops increasing.

Gary talks about the opportunity for the Baby Boomers  (born 1946 – 1964), particularly those born immediately after WWII, to consider whether this is the market to look for their retirement home. The question is: what kind of retirement are the boomers going to be looking at? As a “sandwich generation” of Americans who may well be taking care of their aging parents while still looking after young kids at home, what is that home going to look like? How are three generations, each profoundly different in outlook, going to live together?

In the next couple of weeks, we’ll be talking about the changing demographic profile of the California household. We’ll take a look at how people are remodeling existing homes and how architects are designing new homes to deal with households with musical tastes that span Sinatra to the Jonas Brothers.

Take a look around the room and try to spot all of your electronics.* According to the Consumer Electronics Association, the average American household contains 24 such products. Each of these will eventually become outdated, replaced and thrown away—and at increasingly fast rates. Our current rate of “e-waste” totals 2.25 tons annually, and 99% of the materials are recyclable. The problem is that only 18% of these products are actually being recycled.

At a time when green initiatives are better received than ever before, maybe a few good reasons and methods for e-cycling will help close the gap. At the most basic level, recycling electronics allows certain materials, including metals, to be recovered. This saves our resources because the mining rate of new metals can slow down. Natural habitats are also spared from exposure to hazardous e-waste via landfills.

Now that the end benefits are established, all that’s left to address are the means. Luckily, more e-cycling opportunities exist than you could probably imagine. From free pick-ups to numerous drop-off sites, you’ll be hard-pressed not to participate. The following sites make it easy to find ways to reuse, reduce and recycle electronics locally.

• MyGreenElectronics.org: The Consumer Electronics Association’s resource for learning about e-cycling and green products.
• Earth911.com: An environmental network that provides local e-cycling information.
• eRecycle.org: California’s resource for reusing and recycling electronics.
• ASLrecycling.com: An e-cycling company that provides free pick-up and drop-off services.

One consideration to make prior to recycling your electronics, is whether they’re suitable for reuse. If so, many charities, community programs and schools gladly accept donations. A few companies assist in these contributions. Just be sure to erase all personal data from your electronics beforehand.

• Inveneo provides technology solutions to the developing world.
• CollectiveGood collects and refurbishes used cell phones for underprivileged parts of the world.
• Digital Links distributes reused computers to developing countries.

*Common recyclable electronics include: televisions, monitors, computers, laptops, keyboards, printers, mice, hard drives, fax machines, microwaves, DVD players, VCRs, cables and cords, radios, telephones, cell phones, stereos, power supplies.

Sources
“ASL Recycling,” March 2009
“Bay Area Electronics Recycling,” March 2009
“Bay Area E-Waste Recycling Company Adds 18 Locations in March,” March 31, 2008
“Consumers Encouraged To Reduce, Reuse And Recycle Old Electronics,” January 29, 2008
“eCycling,” March 2009
“Electronic Waste Increase Calls For Smarter Recycling Habits,” January 16, 2008
“eRecycle,” March 2009
“My Green Electronics,” March 2009
“National Center For Electronics Recycling,” March 2998
“Recycling Gadgets When They Go Pffft…” New York Times, March 4, 2009, .
“Where Can I Donate Or Recycle My Old Computer and Other Electronic Products?” March 2009

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When Gary Ryness talks about consumer confidence and home sales, he knows what he’s talking about. His sales crew is responsible for closing 175,000 escrows in five western states since his company was founded in 1975.

In today’s podcast, Gary looks at foreclosures and what the proliferation of foreclosures have done to home prices throughout Northern California. Because so often foreclosures in a neighborhood become the “comp” or comparable for future sales, even people not actively in the market are tracking them, just to get an idea of where the bottom of the market is—for today.

As Gary points out, the California housing market saw some softening as early as 2005, with fewer people out looking at homes, and the beginning of a measurable decline in home sales. Now, if you read the headlines, home sales are up—but these numbers are a reflection of the tremendous interest in buying a foreclosure at prices people have not seen in a decade or more.

For the record, Gary is calling 2009 as the bottom of the market. As he points out, the problem with focusing on the question, “When are we going to hit bottom?” is that the bottom of any market is only apparent looking back. A year from now, we will have a much better idea if the market hit bottom in Q2 or Q3 of 2009, because we will have the statistics to support the call. There is a lot less risk in waiting for the market to be in recovery mode… but by the time the market is in recovery, prices have responded as well, and have heading back upward.

According to Nielsen Net Ratings, 80 percent of home shoppers start their search for an new home online. Not surprising when you consider that you can view photographs, compare listings and narrow your search before you hit the road.

The Real Story has been researching home sales listing Web sites and are happy to share some of our favorites.

iNest.com
iNest, the country’s leading real estate broker specializing in newly constructed homes, has been putting buyers and builders together since 1997. Numerous highly respected firms have selected iNest to supply their Web sites with information about new homes and home builders. RealEstate.com, RealEstateJournal.com and HomeGain.com are among the many Web sites that feature information from iNest’s new home directory.

iNest offers:

• A robust database representing many homebuilders with flexible search options.
• A full-time staff of New Home Specialists that is available to assist users in their search for the perfect new home.
• An exclusive bonus program, which allows qualified users to earn 1% cash back on their new home purchases.
• Easy-to-use research tools
• Friendly, knowledgeable service representatives who are ready to help you find the perfect home.

Move.com
Move.com is the essential resource for consumers seeking information and connections they need before, during and after a move. Users are able to search throughout North America for both new and resale homes and homes and apartments for rent.

The site offers the ability to save a search and listing, and forward listings to a friend. Listings include photos, some properties include featured tours, address information about the community or a specific home. Includes listings for community information and specific homes. You must fill in name, email address, phone number, message and an email will go to the builder. They will contact you or make an appointment. It also gives you the contact person on the property phone number and Web site.

Move.com partners with Realtor.com, Welcome Wagon, Moving.com, Senior Housing and Top Producer. The site features:

• New home listings
• Community listings
• Video tours
• Social networking links
• Area information
• E-mail alerts
• Featured home communities
• Resource links
• Saved/share/favorite searches

NewHomeSource.com
For homebuilders, this site opens up an entirely new way to present and promote their homes. Funded and endorsed by a consortium of the top US homebuilders, NewHomeSource is the first national home marketplace focused specifically on the new home market. NewHomeSource provides prospective homebuyers with the most comprehensive information and selection of new homes available on the Web. This Web site offers:

• New home individual lot listings
• Video tours
• Area information
• Featured community home
• Quick Move-in Homes (standing inventory)

Fizber.com
Fizber.com is a Web 2.0 site for real-estate buyers, sellers and professionals. Buyers find homes for sale on Fizber, sellers sell homes on Fizber, and real estate professionals market listings and promote services there. This engaging site features Google Maps Street View for all available home listings to provide visitors a drive-by snap shot of homes.

Fizber.com offers the following features:

• Blogs
• Video tours
• Area information
• Featured homes
• Quick Move-in homes
• Downloadable widgets
• E-mail alerts
• Walkability rating

Other sites to check out:
zillow.com
trulia.com

What’s your favorite home search Web site?