This problem started with the passage of the Community Reinvestment Act in the late 1990’s which mandated banks make mortgage loans to unqualified borrows in order to increase home ownership.  For the next ten years, Fannie Mae and Freddie Mac, directed by H.U.D. and  encouraged by a complicit United States Congress, continued to lower the mortgage underwriting standards and increase the percentage of sub-prime loans that Fannie and Freddie insured to the point where there was no hope of these government sponsored entities being able to make good on their insurance guarantees without a massive infusion of borrowed money which the taxpayer is on the hook for.  When we finally ran out of both qualified and unqualified homebuyers, the sudden decrease in demand led to the fall in housing prices which in turn led to large losses for those banks holding subprime mortgages and mortgage securities when the value of the homes fell and those borrowers could not pay.  When these banks were in danger of failing, two Presidents and the Congress bailed them out with borrowed money, again with the taxpayer footing the bill.

Many large banks were certainly aggressive in taking advantage of the situation that our federal government’s market intervention created. The repeal of portions of the Glass-Steagall Act in 1999, which effectively removed the separation between investment banks and commercial banks, permitted a level of risky bank behavior that ultimately resulted in a massive tax-payer funded bail out. Without the politician’s interference in the mortgage market, however, the housing bubble would not have occurred as the market would have slowed down gradually once all the qualified buyers had purchased homes. In short, the banks would not have had the opportunity to make sub-prime loans and then seek to mitigate the risk associated with them by creating and selling ridiculous investment products secured by bad loans.

Without an acknowledgement of the causes of the sub-prime mortgage crisis and resultant housing bubble, we cannot hope to deal intelligently with the problems created as a result.

Tony Garufi and Fraida Varah

Fully Remodeled Brick Ranch, Ideal Property - Move Right in & Enjoy! All New Kitchen w/ Cherry & SS Appliances, Hardwood Floors T/O, Fully Remodeled Bath w/ Large Tile Shower, All BRs are Good Sizes, New Windows T/O, Large Family Room in Basement w/ Plush Carpeting & Built In Entertainment Center. Basement also features an extra Bedroom or Office, Laundry Room & Bath w/ Shower! Deck in Private, Landscaped Back Yard. Wonderful Albany Location.

Compared to January 2011, there were virtually the same number of closings but the average selling price was down from $229,000 in 2011 to $212,000 this January. The median price was also lower falling from $203,500 to $177,500. These numbers probably reflect two things. The affordable home buyers program in the City of Albany which probably accounted for 30 or so transactions in October at selling prices under $200,000 and significantly less activity in the middle and upper price ranges during the last quarter of 2011.

As of February 1, there are 1238 active single family homes on the market in Albany County. There were 135 homes that went under contract in January so the month supply of inventory in Albany County stands at 9, still a buyers market.

30 year fixed rate mortgages are still hovering at historic lows in the 4% and sub 4% range.

Fraida Varah

Stunning Contemporary Home with Beautiful Finishes Throughout! Gorgeous Hardwood in LR, DR & Family Rm, Beautiful Stone Fireplace in LR, Stunning Gourmet Kitchen w/ Cherry, Granite & High End Appliances. Stone & Natural Woodwork throughout Living Spaces. Private Master Bath. Family Room in Basement, Very Nicely Finished Plus Large Unfinished Space for Storage. Covered Stone Patio, Private Back Yard, New Furnace in 2008, New Windows.

In addition to the scenic beauty of the Hudson River and Adirondacks, the excitement of the Saratoga Casino and Raceway and Gore Mountain, the Saratoga and North Creek Railway provides access to many of the region’s farmer’s markets, antique shopping spots, and museums and galleries. Popular spots include the Hudson River Trading Company, Garnet Hill Lodge, North Creek Depot Museum, and The Rustic Homestead and Streamside Fly-Shop. The Hudson River Trading Company’s Lodge & Camp merchandise provides a window into the region’s past; Garnet Hill Lodge offers rafting, fishing, biking and hiking; North Creek Depot Museum offers educational programs and exhibits; and The Rustic Homestead and Streamside Fly-Shop encompasses the rustic charm of the region as a renowned furniture shop, art gallery, fly shop, and fishing outfitter.

The Saratoga and North Creek railways include The Hudson Explorer, The New York Express, and The Gore Mountain Snow Train. The Hudson Explorer is the railway’s classic excursion that begins in Saratoga Springs in morning with return trips to North Creek in the late afternoon. The New York Express provides morning service from North Creek to Saratoga Springs, where riders head to the Saratoga racetrack or to NYC. After a half-century hiatus, The Gore Mountain Snow Train once again brings skiers and sightseers to North Creek. Diners can enjoy breakfast, lunch, and beverages in the Golden Sands and Bryce Canyon Vintage Coach Cars as they take in the beauty of the Adirondacks.

The Albany Chef’s Food & Wine Festival will be held January 12^th, 13^th and 14^th (Thursday through Saturday) at the Crowne Plaza – Albany City Center (unless otherwise noted). Participating chefs and restaurants include AJ Jayapal from the Mallozzi Family, Brian Molino from Prime Business Dining, Dale Miller from Sperry’s, Jaime Ortiz from Angelo’s 677 Prime, Jim Rua from Café Capriccio, Jonathan Crean from Kelsey’s Crowne Plaza, Luc Pasquier from Attache Culinaire, Mark D. Graham from Mezza Notte Ristorante, Ric Orlando from New World Bistro Bar, and Yono Purnomo from Yono’s and db, An American Brasserie.

The festival kicks off with a Mayor’s VIP Reception, which will be held at City Hall from 5 pm-7pm on Thursday, January 12^th. The reception is presented by Angelo’s 677 Prime and The Business Review, and wines are courtesy of Korbel & Sonama-Cutrer. Limited tickets are available for $125.

On Friday, January 13^th, 4pm-8pm and Saturday, January 14^th, 12pm-4pm there will be a Grand Tasting at Rising Star Chef Pavilion. There will be more than 250 wines, spirits, and beer and 40 participating chefs and restaurants over two days of tastings. The wines are courtesy of Empire Merchants North, and Beer by DeCresente. Three Rising Star Chefs will be featured in the Grand Pavilion at the ballroom entrance. Tickets are $50.

A Slider Slam will be held 8pm-11pm on Friday, January 13^th, featuring 10 participating chefs and restaurants. Craft Beer pairings are presented by Brewery Ommegang, and Wine & Spirits by Empire Merchants North. There will be live music and dancing, a Judge’s Choice, and a People’s Choice for best and most creative sliders. The Slider Slam is $25.

On Saturday, January 14^th, the Signature Chef Invitational will be held between 1pm-3:30pm, where chefs will compete for a spot on the 2013 Signature Chef Team in a mystery live competition during the Saturday Grand Tasting in the Pearl St. Room. The 2012 competitors are Jason Baker from Wine Bar & Bistro on Lark, Dominique Brialy from The Epicurean, Ryan Huneau from The Mallozzi Group, Rachel Mabb from the Renesselaer at The Hilton Garden Inn, and Giovanni S. Morina from the Gio Culinary Studio. Tickets are included in Saturday’s Grand Tasting.

There will be a Grand Gala Reception and 6-Course Dinner on Saturday, January 14^th. The Reception will begin at 6pm and the dinner at 7pm. The 2012 Signature Chef team will present “Food as Art” at live action stations, inspired by Capital Repertory Theatre’s 31^st Season. Wine is presented by Empire Merchants North, paired by Sommelier Dominick Purnomo. There will be a live and silent auction, and music and dancing. Tickets are $150.

There were 152 homes that closed in December compared to 157 in November. The average price fell from $227,000 to $221,000 and the median price fell from $203,000 to $182,000. Average days on market for those homes that closed in December were 89 and the sale to list price ratio was 96.3%.

Preliminary year end numbers for 2011 show 1892 homes sold and closed compared to 1962 last year. The average price dropped slightly from $228,000 to $227,000 and the median price dropped from $201,000 to $195,000. Average days on market increased from 73 in 2010 to 80 in 2011 and the sale to list ratio remained about the same at 96.5%.

Single family inventory in Albany County stood at 1281 homes on January 3, 2012 and their were 104 homes that went under contract in December indicating a 12 month supply of homes on the market, up slightly from November when there was an 11 month supply.

30 year fixed mortgage interest rates remain at historic lows in the low to mid 4% range.

Fraida Varah

Year to date, single family closed home sales in Albany County are running about 100 fewer that last year to date with 1719 so far this year compared to 1814 this time last year. The year to date average sales price is up slightly to $228,000 from $227,000. but the median is down slightly to $196,000 from $200,000. The average days on the market is up from 72 to 79 and the sale to list price ratio is virtually unchanged at 96.5%.

The months supply of inventory stands at 12 months with 1493 active listings as of December 1 and 126 pending sales written in November. 30 year fixed rate mortgage interest rates remain in the 4% range.

Fraida Varah

So, what can you expect from a visit to Maple Ski Ridge? For starters, you’ll find trails accommodating every snow enthusiast—from beginners to daredevils. Plus, the Terrain Park, with its hills, jumps, and rails, gives you the chance to do tricks just like the X Games pros. Private lessons and group lessons are available for people of all ages and skill levels, making it easy for everyone to hit the slopes with confidence. And no worries if you don’t have your own equipment, because Maple Ski Ridge has plenty of snowboards, skis, poles, boots, and bindings available to rent.

Season passes purchased before November 30^th are only $275, so buy your pass today and save! Day passes are also available, starting with four-hour passes for $32. If you’re looking for a great deal, consider signing up with your family or friends for unbeatable group rates. For more information on rates and passes, click here.

COMMERCIAL PROPERTY: Former church and school library converted to office, showroom/demo, and storage space on two levels. 21 car parking. C-1 commercial zoning permits many uses. Contact agent, Tony Garufi, direct for showings 438-9302

The following are some basic winterizing tips:

1. Check the seals around windows and doors for drafts. If you’re having trouble feeling drafts, try lighting a stick of incense to help you see them. Apply weather stripping wherever air is getting through. Investing in door sweeps is also an inexpensive investment that quickly pays off.
2. Since heat rises, adding insulation to your attic is an easy and relatively inexpensive way to keep more warmth inside your home. Remember, you should have a minimum one-foot of insulation up there, no matter how cold it gets.
3. Insulate your pipes to keep them from cracking. Pre-molded foam rubber sleeves are available at most local hardware stores.
4. If you have a fireplace, make sure there isn’t any debris in the chimney. Also, consider investing in a chimney cap to keep obstructions from entering your chimney in the first place.
5. Cleaning out your gutters might seem like a time-consuming chore, but clogged gutters can cause water to back up and freeze, which can potentially lead to a leaky roof.
6. Make sure your furnace is working properly. Replace the furnace filters at the beginning of winter, and plan to change them as needed throughout the season. An annual tune-up and cleaning is also advised.

Year to date single family homes sales in Albany County stood at 1556 compared to 1656 for the same 10 month period last year. The average selling price is unchanged at $228,000 but the median selling price is down to $195,000 from $200,000. Average sale to list price ratio is about the same at 95.5% and the average time on market is up slightly from 71 days to 78 days.

As of November 1, there is approximately 11 months of inventory available with 1600 listings and 142 houses selling in October...still a buyer's market across many price ranges althought not all.

Mortgage interest rates continue to remain below 4% for a 30 year fixed rate conventional mortgage.

Fraida Varah Real Estate Group

Year to date, single family homes closed is 1409, down from 1514 during the first nine months of last year. The average sale price is up from $228,000 to $229,000 and the median sale price is down to $195,000 from $200,000 last year. The average sale to list price is about the same as last year at 96.4% and the time on the market is up from 72 days last year to 79 so far this year.

The market slowed some in September with 123 homes going under contract and with 1653 homes on the market as of October 1, the months supply of inventory is now up to 13.2 months compared to 9.5 months at the end of August.

Home mortgage rates are at historic lows with a 30 year fixed rate FHA loan now available at 3.75%.

Fraida Varah

http://albanyny.gov/Government/Departments/DevelopmentPlanning/AlbanyCommunityDevelopmentAgency/HomeownershipAssistance.aspx