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John Burns joined The Real Story on the exhibit hall floor at last week’s Pacific Coast Builder’s Conference, to talk about—among other things—the ongoing presence of the Federal government in the housing market. The big surprise to most is that as the Treasury backed out of its position as the only buyer of mortgage-backed securities—to the tune of about $1.3 TRILLION—conventional wisdom said that interest rates would climb back up. Instead, they went down.

Rarely does one get to see a national housing market analyst like John Burns literally scratch his head, but there you go: the catch phrase for this particular phase in the economic cycle has got to be called “Who’d Have Thunk It?”

It’s never too soon to implement good financial habits. But financial wellbeing is challenging for today’s newly minted college graduates, as most are already in debt.

According to CBS Moneywatch, the typical graduate has $4,100 in credit card debt and $22,000 in student loan debt.

Debt is something grads will want to control as they move from college into real life. There are plenty of people over the age of 50 who have little or no savings and piles of debt. A few good habits now can help today’s grads from ending up in that category.

The Real Story took a breeze through advice that’s readily available on the Internet and has compiled these tips:

Put a timeline on your job hunt.
No job is perfect, so take one that is a step in the right direction. It’s important to start earning and building a work history. You can always look for something better.

Create a budget and stick to it.
Based on your income, create a realistic budget. Be sure to chart expenses for housing, clothing, food (learn to cook; it’s cheaper and healthier), entertainment, insurance and other expenses. You may want to use online budgeting tools like Mint.com, Kiplinger.com or LearnVest.com.

Health care coverage is essential.
Talk with your parents and determine when your coverage on their plan ends. Be sure to sign up for new coverage with your employer or shop for a plan you can afford. This is important, as an unexpected medical expense could plunge you farther into debt.

Pay off your student loans as soon as possible.
If you have more than one loan, consider consolidating them to get a better interest rate. Talk to your banker or financial planner. Ask about student loan interest tax deductions.

Begin saving now.
Divert as much of your paycheck as possible to meet your savings goals. Be sure to have an emergency fund and park at least 10% of your income there until you have enough money to cover three months worth of expenses. Also, be sure to take advantage of your employer’s 401K plan. Retirement may seem like a long way off, but you will benefit in the long run.

Be disciplined about credit cards.
SuddenlyFrugal.com reports that a Dunn & Brandstreet study shows people spend 12 -  18% more when they pay with a credit card. Use cash or your debit card to keep those purchases under control. Don’t be tempted. If you can’t afford to pay cash, think long and hard about making the purchase.

moneywatch.bnet.com/economic-news/video/financial-tips-for-college-grads/433869/

www.mainstreet.com/article/career/students/gen-y/financial-tips-new-college-grads

www.mydollarplan.com/10-financial-tips-for-new-grads/

www.suddenlyfrugal.com/2010/05/5-financial-tips-for-college-grads/

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It’s official: California’s real estate recovery is underway. The problem? It’s not the same recovery in all parts of the state.  In fact, it’s not the same recovery in all parts of the same county. The Real Story caught up with John Burns of John Burns Real Estate Consulting at the Pacific Coast Builders Conference (PCBC) last week. John responded to a PCBC survey that shows that 72 percent of the homebuilders believe the contraction is over, and that 40 percent are actually seeing signs of improvement by saying that he is optimistic about the long-term, but reminds us that there is still lots of inventory to work through. The high-end is still falling, and the issue of strategic defaults—people who can make their mortgage payments, but are choosing foreclosure instead—is still to be reconciled. Will the high-end of the market see a flood of foreclosures as Alt-A loans come through?

John also talks today about government intervention in homebuying, and predicts that the homebuilding industry will be tied at the hip to the Federal government for years to come. The California tax credit? A success, in its ability to get people off the fence and into the market. And, says John, if you don’t believe its efficacy, just check out the Texas housing market, which has been in freefall since the Federal tax credit expired.

Listen to John today, tomorrow and Wednesday, or download him on iTunes any time.

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In spite of all of the discussion about solar energy, the industry is in its infancy: less than 1 percent of the US energy supply comes from solar power. As its costs decline and it becomes a more competitive alternative, the term “alternative energy” may move closer to a simpler name: energy.

Travis Bradford, founder of the Prometheus Institute for Sustainable Development, is guesting with The Real Story this week. Today he talks about how utility planners are looking at transmission of power across state lines, so that some of the cloudier states, like Oregon and Washington, can benefit from California’s sunshine.

He also provides a tutorial on grid parity—that conceptual point at which the cost of generating solar energy is equal to or below the cost of the electricity it displaces from the grid.

Since he introduced the PACE (Property-Assessed Clean Energy) discussion in yesterday’s podcast, The Real Story has learned that California’s idea for financing solar has been adopted by Colorado, Illinois, Louisiana, Maryland, Nevada, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Texas, Vermont, Virginia and Wisconsin.

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Consumer confidence is still low, in spite of positive signs about a nascent recovery. Brad Blackwell, Executive Vice President of Retail National Sales for Wells Fargo Home and Consumer Finance Group talks to The Real Story about the cynicism that isn’t going to go away with the first reports of positive quarterly earnings. Not only is it going to take time to rebuild consumer confidence; it is going to take more buzz about local job creation to get a response that will last.

Local just might be the word for the recovery. Brad reminds us that the recovery is not going to spread, blanket-like, over the land. Texas is not recovering at the same rate as California. Even within the state, there are going to be pockets of recovery—and the view is literally going to change from one neighborhood to another. Multiple offers on resales in one area; short sales in another.

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Brad Blackwell tells The Real Story that consumer behavior seems to have changed during this prolonged downturn, and that consumers are paying off their debt without incurring more debt to do so.  Is it a long-term shift in attitude, or a short-term response to catastrophe?  He is betting on consumers and some long-term behavioral change about debt.

He is also giving praise to the behavior of the Fed for its unprecedented—and well-executed—approach to controlling long-term interest rates by purchasing mortgage-backed securities.  Its actions stimulated refinance activity, keeping people in their homes, and made home buying more affordable, bringing new people into the market.  The Fed kept its promise to get back out again, as of the end of March, its exit was complete.  Interest rates have clicked up as the private sector has re-entered the market, but the flight upward has not been a rapid one.

Brad, as EVP of Retail National Sales, Well Fargo Home and Consumer Finance group, gives The Real Story the background on the Federal Regulatory Reform Bill, and what’s in it to protect consumers, especially those doing business in different states. Interesting insights, available in today’s podcast.