President Obama & the effects on housing in the Bay Area..

Earlier this week, President-elect Obama announced many of the new members of his cabinet—an important move which showcases his commitment to hitting the ground running once he takes office in January.

Not surprisingly, the order of his political appointments has even been well-planned with Obama first selecting the appointment of his economic team (which he has made very clear is his first order of business), led by Timothy Geithner as Treasury Secretary, and this week his national security team, picking once rival Hillary Clinton as Secretary of State and President Bush’s Defense Secretary, Robert Gates, to continue at his post.

Obama announced on Saturday that he has asked his economic team to develop an economic recovery plan that will (by 2011) “help both Main Street and Wall Street help save or create at least 2.5 million jobs while rebuilding our infrastructure, improving our schools, reducing our dependence on oil and saving billions of dollars.” Many members of the media are calling his plans a “teched out” version of FDR’s New Deal which many arguably believe helped to pull America out of the Great Depression.

It remains to be seen whether or not this can be done but I’m excited about the prospects for our country and am looking forward to watching the plans unfold over the next several months. In the meantime, there are two things pressing right now for our local market. The first is talk of decreasing interest rates into the 4.5% range which could increase a buyer’s purchasing power dramatically in today’s market. Couple that with one of the most pressing issues for our local market which is the fact that the conforming loan limits (increased earlier this year to $729,750 in most Bay Area markets) are set to expire at the end of 2008.

Perhaps there will be another stimulus package that will raise the conforming loan amount but at this point, that answer is unknown which is giving many buyers a reason to act now. Knowing this, the last couple of weeks—though holiday weeks—have had some surprising twists. Let’s take a look at this week in real estate:
- San Francisco—Our Lombard office notes that the market has been pretty quiet. REO sales are leading the way. Open house traffic is light. We’ve seen a huge number of withdrawn listings after this week’s Broken Opens but widely differing opinions as whether or not sellers should stay on the market during the holidays. Our Market Street office had one property go into multiples this week with 10 offers. The property needed fixing but had a great location. It did go over asking but not quite as much as one would have though. For the few opens that were help open over the weekend, the traffic was good and Agents felt qualified buyers were coming through and ready to buy. Our Noriega office notes that the market is slow all the way around over the last weeks of November.

- Santa Cruz County—Local inventory in the county continues to drop weekly as we move quickly into the holiday season. Single family residences in the county are down to 883 total with 259 total pendings in the county. 104 of the pendings are in Watsonville and represent the very active REO market and another 45 are in San Lorenzo Valley, the two outer ends of the county. The remainder of the sales are spread throughout the county with the Aptos, Seacliff, RDM, Seascape and La Selva Beach collectively with the highest number of pendings. Buyers continue to control and drive the market and few changes are expected through January.
- Silicon Valley—Our Cupertino Stevens Creek office reports that the market continues to be slow as sellers are holding their homes off the market for the holidays. Buyers continue to circle like shares looking for the best deals. Open houses reflect a large number of buyers still in the market for homes. Our Los Altos First Street office notes that open houses are still getting good activity but buyers are wanting to wait. Older listings are not getting much interest even after a price reduction which is a good reminder for sellers to price and present the properly correctly from the beginning. Our San Jose Will Glen office notes that it is still pretty busy and open houses continue to draw interested buyers.
Though historically speaking December is a slow month, I suspect with the impending decrease of the conforming loan limits as well as the impending interest rate decrease, we may see a busier December than expected.

President-elect Obama has a grand vision for the country once he takes over in January and I think all of us are waiting to see if he is able to fill his promises.

Until then, I’d like to leave you with this. Today’s market is not for the weary. Today’s market is for the serious buyer and seller. Buyers who are looking for a home right now—not only in today’s economic conditions but also during this festive time of year—are serious and typically, are ready to make a move. Sellers who are selling right now—again, in this market and during this time of year—tend to be serious and motivated. The key is to bring the two together on level playing fields and to get a positive result.

Right now remains one of the greatest opportunities in decades to purchase a home so take advantage of this opportunity before it is too late.

Monica Manocha Re,CMRS
Silicon Valley~Monterey Bay~East Bay
Direct: 408-399-1495
Please let me know how I can help you, your friends, family & co-workers with all their real estate needs.

Real Estate on the Rise in the Bay Area Market?

What a great week it was for real estate. And no, I’m not being facetious.

A number of real estate organizations released their third quarter and/or October statistical reports—revealing some very interesting and important trends in our market. Let’s take a look:
NAR Presents Four-Point Housing Stimulus Plan to Congress
Earlier this week, NAR representatives presented a four-point plan to help foster a housing recovery to support an economic rebound. The plan calls for eliminating the repayment of the first-time home buyer tax credit that was passed in the February stimulus bill and to expand the tax credit to include all home buyers.
The plan also recommends making the increased FHA and conventional loan limits permanent to stimulate home sales and stabilize prices. In addition, the plan urges that the Troubled Asset Relief Program be put back on track by targeting the funds for mortgage relief through a mortgage interest rate buy-down. Finally, the plan recommends finalizing legislation to prohibit banks from entering into the business of real estate brokerage and property management.
“The only way to overcome today’s economic turmoil is to motivate and encourage worried or cautious housing consumers to enter the marketplace,” said NAR President Charles McMillan. “Stabilizing the housing market will lead to a quicker and greater economic recovery. Our goal is to ensure there is a healthy market and sufficient capital to support mortgage lending to qualified borrowers.”
CAR Releases First Time Home Buyer Housing Affordability Index
CAR released its First Time Buyer Housing Affordability Index which showed that the percentage of households that could afford to buy an entry-level home in California stood at 53 percent in the third quarter of 2008, compared with 24 percent for the same period a year ago.
The real estate organization reported, “The minimum household income needed to purchase an entry-level home at $287,760 in California in the third quarter of 2008 was $56,100, based on an adjustable interest rate of 5.91 percent and assuming a 10 percent down payment. First-time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including taxes and insurance was $1,870 for the third quarter of 2008.”
The organization also reported, “At $56,100, the minimum qualifying income was 44 percent lower than a year earlier when households needed $100,500 to qualify for a loan on an entry-level home. Recent decreases in home prices and mortgage rates have brought affordability into better alignment with income levels of the typical California households, where the median household income is $59,160.”

DataQuick Releases October Sales Figures
“Bay Area homes sold at their fastest pace in 17 months in October as buyers favored more affordable inland areas where depreciations and foreclosures have hit hardest. As a result, the median sale price continued its steep, months-long decline, falling a record 40.6 percent, or $256,000, from a year ago,” reported DataQuick.
“A total of 7,613 new and resale houses and condos closed escrow in the nine-county Bay Area in October. That was up 4.7 percent from 7,271 in September, and up 38.8 percent from 5,486 in October 2007,” continued the report.
“The median price paid for all new and resale houses and condos combined fell to $375,000 last month, down 6.3 percent from $400,000 in September and down a record 40.6 percent from $631,000 in October 2007.”
“Inland communities continued to fuel the bulk of the Bay Area's sales gains, attracting buyers searching for the biggest discounts.”
“Contra Costa, Napa, and Solano counties - where prices are down sharply and sales have risen the most - accounted for 36.4 percent of Bay Area sales in October, compared with 25.0 percent a year ago. Sales of existing single-family houses in those counties rose 126 to 187 percent last month from a year ago. Meantime, sales fell or rose more modestly in pricier San Francisco, Marin and San Mateo counties.”

So what does all of this news mean? Honestly, it’s music to my ears.
Real estate is in a very good position right now. Because you see, real estate makes up 20% of the Gross Domestic Product in this country and regardless of which side of the political fence you fall on, the fact remains that our country cannot be fixed without first fixing the housing sector. That puts us in a very good position because real estate—more so than any other industry—will be gaining a great deal of attention over the next several months—and as you can see from the figures above—it already has been. Whether that attention comes in the way of more tax benefits, home ownership credits, subsidies or interest rate stabilization, the leaders of our country are focused and diligent on fixing the housing sector which is perfect news for our industry and our business.
Couple that with the fact that we may very well be on the brink of a turn-around—based on what we are seeing nationwide and based on figures from DataQuick as well as the fact that homes are so much more affordable now—I believe we may be poised for a housing recovery. Just look at the figures from DataQuick. Sales in the Bay Area are up 38%. What that tells us is that many people feel like right now, real estate, in relative terms, may not be a bad place to park their money. Compare that to the volatility of the stock market and housing—if history is any indicator—is looking like a pretty darn good investment.
Keeping that in mind, let’s take a look at this week in real estate:
Silicon Valley—Our Cupertino Stevens Creek office reports closings are steady but openings and listings are slow. Our San Jose Willow Glen office is reporting that folks are sitting back and waiting, waiting and waiting. We have buyers and some offers are getting rejected. Our Saratoga office is reporting that the upper end is extremely slow. Buyers are being cautious given the negative economic news.
So while sales have been a bit quiet this week, the positive news I am seeing in our industry reminds me just how great this business truly is. No other sector of our economy is getting the attention and focus than that of real estate. We truly are poised for a housing recovery. How great? Only time will tell. But what we do know is that “this too shall pass” and while the recovery won’t happen overnight, it will happen…and based on DataQuick’s 38% sales increase, CAR’s first time home buyer affordability index (jumping 29% year over year) and NAR’s stimulus plans, all signs are pointing north. I’ll see you at the top.

Please feel free to pass this article on to your friends and family. I am never too busy for your referrals, so please keep me in mind.

Hope you enjoy your Thanksgiving Feast on Thursday and Black Friday Bargains! Happy Holidays to all!

Regards,
Monica Manocha Re, CMRS
Ph: 408 399 1495 Email: monica.manocha@cbnorcal.com
Web: www.monicamanocha.com

Bay Area Real Estate Market Update Nov 2008

Silicon Valley Weekly Market Update from Monica Manocha @ Coldwell Banker

What we are enduring is no longer a national economic crisis. We are full swing in a global financial crisis that has affected at least 11 countries around the world. Brazil, China, Germany, Iceland, India, Japan, Russia, Saudi Arabia, South Africa and the United Kingdom are now all reporting economic declines and many experts agree that their woes are a direct result of the U.S. housing decline.
World leaders gathered in Washington on Friday to talk about what is needed to get the global economy back on track. Leaders from the Group of 20, which includes the United States, members of the European Union, China, Saudi Arabia and Brazil, agreed to the summit late last month at the height of the global financial crisis.
Though regardless of the outcome of that meeting, changes won’t happen quickly as reports show that any major change will have to first wait approval of Obama, once he is sworn in as President.
The government continues to struggle with finding a solid, coherent way to help the housing sector. The administration is still working on the best way to deploy the remaining money in the $700 billion financial rescue plan passed last month. Treasury Secretary Henry Paulson said Wednesday that the government will no longer buy troubled mortgage backed securities—the original intent of the legislation—and will mainly focus on injecting money into the financial sector.
The debate amongst policy makers continues until they choose a strategy that makes the most sense for the economic well-being of our country.
While we anxiously await their next step, all we can do is continue to move forward, continue to conduct business and stay motivated in this ever-changing business climate.
One interesting piece that—I think will help you do just that—I wanted to share with you; it is a look at the housing forecast for 2009. CAR’s Leslie Appleton Young recently conducted her 2009 forecast presentation (http://www.car.org/newsstand/2009forecast/). I encourage you to watch this important (though long) presentation so you may be aware of this valuable information.
Specifically, Leslie shares how California compares to the rest of the country, noting that while we decreased further and faster than the country as a whole, we are also rebounding at a much faster rate than the rest of the country. It is an important fact that consumers should be aware of.
She also shares the importance of local forecasting noting that it really is a mistake to paint the California real estate market with a broad brush. For example, markets like Central California were hit much harder than the Bay Area yet are often lumped into California real estate stories which make our local numbers seem worse than they actually are. When in fact, our numbers are showing some compelling positive signs. Our sales in the Bay Area, according to DataQuick, have increased 45% since 2007. While we do know that much of this is related to bank owned property sales, the positive side of this is that the buyers are out there and regardless of the price point, the fact is that homes are selling. As we weed through the bank owned listings, inventory will decrease which will eventually cause the price point to increase.
With this week’s economic update in tow, let’s take a look at this week in real estate:
San Francisco—The market seemed to take a slowdown this week, though consumers and Realtors alike share the same positive outlook. Open houses were well attended with a lot of buyers. People who have been sitting on the fence for a while were writing offers this week. Our Van Ness office noted that while there are still sales happening, buyers seem to just want to hover to wait and see which direction the market will go in the upcoming months.
Silicon Valley—Morale remains high under challenging conditions. Properties under valued often receive multiple offers signaling that the buyers are still hanging around for the best values. Our Saratoga office experienced a slight increase in sales in the non-Previews market. Also, listing activity has slowed as expected given that we are approaching the end of the year.
The question I am asked most from people I meet is “how do I stay motivated in today’s economic climate, where we’re all struggling with today’s rollercoaster economy?” My best recommendation to you is to continue to stay positive—focus on the opportunities available in today’s market—and shift your focus on the encouraging aspects in your life and work. And there truly are quite a few positives: attractive interest rates, generous inventory, motivated sellers, economic stimulus benefits and more. This remains arguably one of the best opportunities to buy a home in decades. A Great time to buy investment property too! We need to focus on those positives and rejuvenate ourselves, so we continue to remain on top.

Have a great week!
Monica Manocha
P.S. Remember that I am always here to help you, your friends and family with all their real estate needs.

The Bay Area Real Estate Market Update

“Change has come to America.”

Regardless of your political persuasion, this election was one for the history books. President Elect Obama, in his acceptance speech said, “It’s been a long time coming, but tonight, because of what we did, on this date, in this election, at this defining moment, change has come to America.”
In interviews following his win, Obama said that his first order of business will be to focus on restoring our economy. Only time will tell if the change he has promised becomes a reality but for now, President Elect Obama’s plans for the White House remain clear.
“We must move forward, quickly and aggressively, with a middle-class rescue plan that will create jobs, provide relief to families, help homeowners and restore our financial system,” said Obama.
Among the notable plans he has to help stimulate the economy:
Allowing savers to temporarily tap into their retirement plans without early withdrawal penalties
Require financial institutions participating in bailout to put a 90-day moratorium on foreclosures for homeowners “acting in good faith
Allow troubled homeowners to refinance to a loan insured by FHA
Create a 10% tax credit for homeowners who do not itemize their taxes
Create a $10 billion fund to help victims of predatory loans
Authorize bankruptcy judges to reduce mortgage principal
“If the government can bail out investment banks on Wall Street, then we can extend a hand to folks who are struggling on Main Street.”
Again, only time will tell, but the hope for something new and a better future for all of us is welcome news right now.

NAR President Charles McMillan concurs noting, “We’re in a good place. Realtors are excited by this historic election and stand ready to work with our new president and the new Congress on issues that are at the heart of the American dream of homeownership.”

Silicon Valley— Though buyers are still cautious, things seem to be brighter in Silicon Valley. Many of our Agents are gearing up their business for the start of 2009. Buyers—though cautious—are out touring properties, visiting open houses and meeting with their Realtors. We seem to have a lot of buzz, though little of it has resulted in notable amounts of activity. I think much of that is due to the volatility in the stock market over the last several weeks and the lack of knowing who our next President would be. Now that one of the two is settled, I think we should see a return to stability and security in this region.

My message this week to everyone is let’s embrace this time of change. Whether you are a Republican, a Democrat or an Independent, we all need to join together in restoring our market and move ahead from here with the bright prospects of our future just beyond us. It is very possible that the worst of times has passed. But even if they haven’t, real estate remains an important investment, not only financially, but personally as well. It is in times like these that we need to be reminded of and embrace the American dream and remind ourselves that owning a home is more than an investment—though it remains one of the best investments we will make in our lifetime. Our home is where we raise our families, build traditions and create memories that will last a lifetime. And I can’t think of a better investment in our lives and our own well-being than that.

Have a great week and here’s to our future,

Monica

Bay Area Weekly Market Update----- Happy Halloween to all

I had all of my clever Halloween puns planned for the week—“It was a Spooky Week on Wall Street”—or “The Market Takes Another Ghoulish Hit”—but alas, I am pleasantly surprised to say my puns are for not as things were definitely looking up for the market this week.

For starters, the central bank cut the federal funds rate, a key bank lending rate, by half a percentage point to 1%, a low last seen in June 2004. The funds rate has not been lower since 1958 when Dwight Eisenhower was president.


Just one day later the government released the latest GDP report which showed that the economy shrank at a slower pace than expected in the third quarter (though, to keep things in perspective, it did endure its biggest decline in seven years).

And if all of this news wasn’t good enough, negotiators for the Treasury and Federal Deposit Insurance Corporation announced that they are nearing an agreement on a plan to have the government guarantee the mortgage of millions of distressed homeowners. The plan could cover as many as three million homeowners in danger of foreclosure. If this plan were to pass, it will help us deplete our bank-owned inventory and subsequently should help stabilize home prices nationwide.

As an aside, our parent company Realogy is doing its part to support the stimulation efforts by this week releasing a statement that proposed a short-tern government buy-down in mortgage rates to stimulate the housing market and accelerate broader economic recovery. In a statement released to media on Tuesday, Realogy called for a short-term government buy-down of mortgage rates of at least 4.5%, or lower, for a 30-year fixed rate mortgage (down from current rates of approximately 6.04%). This homebuyer incentive would apply to the purchase of all new and/or existing homes sold up to $1 million in price. Only time will tell if this solution is adopted but it is commendable to see our parent company working so hard on our behalf to stimulate the housing market.

Thursday, Wall Street reacted to the week’s good news with the Dow Jones Industrial Average gaining 190 points or 2.1%, The Standard & Poor’s 500 index rose 2.6% and the NASDAQ composite (COMP) gained 2.5%.

But is all of this enough to revive an economy hit by a long list of problems stemming from the most severe financial crisis in decades? It’s definitely a start.

Earlier this week Time Magazine reported that there is a sign that we are bottoming out noting “The rate of sales decline slowed in August, according to Case-Shiller, and in September existing home sales rose 5.5% nationally, which means buyers are finally being lured to the market by low prices.”

As you’ll recall, President Bush said prior to signing the Emergency Economic Stabilization Act of 2008 that all of the recovery plans in store would take time to work. And only time will tell whether or not these plans are successful. But we are starting to see some positive stories with some better than expected results which is a good sign for all of us.

Next week we’ll learn who our new President will be, which, historically speaking, should lessen some of the concerns and (hopefully) settle some of the unrest on Wall Street. Once investors know who will be running the government for (at least) the next four years, they’ll feel more apt to making longer-term investment decisions.

Now, let’s take a look at this week in real estate. My overall assessment is that after a slow couple of weeks due to the economic woes on Wall Street, Main Street’s real estate is looking brighter and buyer interest is increasing.

Silicon Valley—Though buyers are still cautious, things seem to be brighter in Silicon Valley. Our Cupertino Stevens Creek reports “Sales continue to improve with good news looming in the media.” Our San Jose Main office concurs noting “Our immediate market continues to be brisk. Excellent open house traffic reported this weekend. Entry level homes and REO properties continue to receive the greatest attention and most reported sales are in the $350,000 to $550,000 range.” The upper-end has definitely taken a hit and the consensus is that it is slow all the way around in this niche. Our Almaden office reported that a buyer was about to pull out of one transaction this week unless the seller dropped his price from $2.2 million to $1.975. The seller reluctantly agreed. Definitely a sign of the times.
South County—The South County market continues to be driven by REOs The luxury market is South County is very slow with properties over $1 million seeing the following statistics:
Morgan Hill (100 listed, 9 pending)
Gilroy (53 listed, 5 pending)
San Martin (24 listed, 1 pending)

Overall, it was a good week for the Bay Area and momentum continues to build after a very rough September. Our market continues to be challenged by some buyers who are waiting to see what the market is going to do. Buyers should be reminded of the fact that waiting could cost them plenty in terms of higher prices, lower inventory and higher interest rates. It’s just a matter of time before we move from a buyer’s market to a more normalized exchange between buyers and sellers and we need to educate our buyers now that if they don’t act, they will reduce their purchasing power and may lose out on a bigger and better home!

Have a great week and a Happy Halloween,

Please feel free to contact me for any real estate questions you may have.

Monica Manocha Re, CMRS
408 399 1495
monica.manocha@cbnorcal.com
www.mmgproperties.com

South Bay Home Sales Are Up!

Home Sales Are Up…But Can Someone Tell the Stock Market That?

It was an interesting week in news. More specifically, it was a great week in news for real estate—but in its third consecutive week (yes, I’m being kind) of volatility, the stock market did little to support the cause.
Let’s start with the good news. NAR released its Pending Home Sales Index—a forward-looking indicator based on contracts signed in August—noting pending homes “jumped 7.4 percent to 93.4 from an upwardly revised reading of 87.0 in July and is 8.8 percent higher than August 2007 when it stood at 85.8. The index is at the highest level since June 2007 when it stood at 101.4.”
Days later, DataQuick News reported “Bay Area home sales soared last month above the record-low levels of a year ago, marking the largest gain in over six years. The median sale price did the opposite, diving to $400,000 - 40 percent below its summer 2007 peak - as more sales shifted to lower-cost inland markets laden with foreclosures…Last month's 45 percent year-over-year sales gain was the highest for any month since April 2002, when sales shot up 49 percent.”
What the heavy foreclosure sales figures are telling us, however, is most important. The dramatic increase in sales suggests that more investors are deciding that prices have fallen to bargain levels and they are now getting into the market. Historically speaking, it is investors who determine where the bottom is. When they think prices have reached a point where they can potentially buy low, wait a bit and in a few years turn a profit, they’ll swoop in. We’re starting to see this now and that is welcome news to many.
Of course housing recovery as a whole is dependent on the course of the overall economy which had less than stellar news this week. By Thursday, the Dow rallied back after two days of declines—including a loss of 500 points on Wednesday—but the NASDAQ slipped to its lowest point in more than five years.


Locally, what the volatility on Wall Street is doing for many consumers is causing concern. We have a lot of buyers and sellers who are watching their portfolios each day and are concerned about taking action in purchasing a home until the volatility subsides. In more than one instance we’ve seen buyers back out of contracts in fear of what may happen—even if they were having no issues with gaining the loan.

And while I think we all understand the reasoning and the concern, what I do remind consumers of is the fact that we are in one of the best buyer’s markets of our generation and despite what you may be reading, home mortgages are available. Couple that with the fact that despite the turmoil in the world’s financial markets, we remain in one of the most desirable and historically speaking, stable real estate environments in the world. With bank owned properties so prominent, interest rates falling and time-sensitive benefits available through the newly enacted economic stimulus package, we have what may be the perfect storm for buyers. It’s just a matter of time before we start feeling the flow of credit, the ease of purchasing and consumer confidence restored. Buyers need to be properly counseled on these complexities (and opportunities) before they miss out.

Let’s take a look at this week in real estate:
· Silicon Valley—Silicon Valley changes from week to week and from neighborhood to neighborhood. This week our Cupertino office is reporting that although sales are treading steady, new listings that are coming on to the market are slow. Buyers continue to come through in waves looking for the under valued deal. We are seeing increased buyer activity and stronger sales, mostly in the REO price range. We are also seeing increased traffic at open houses. Entry level homes seem to get the best traffic. Overall I’d say that things are slowing down quite a bit but buyers are out there. They’re just looking for the best deals and then they act.
Before I leave you, I thought I’d share a final, interesting note released by NAR this week—projections for 2009. NAR Chief Economist Lawrence Yun “expects growth in the U.S. gross domestic product (GDP) to contract for two consecutive quarters, in the fourth quarter of this year and the first quarter of 2009, before expanding in latter part of 2009 as the housing market begins a steady improvement.”

This is a good sign for all of us and for buyers—if you are thinking about staying in your home even for just a few years—now may be the perfect time. Now’s the time to get out there and take advantage of the best buyer’s market of our generation, before it is too late.

Until next week.
Monica

Is the Bay Area real estate market turning for you?

Is The Market Taking a U-Turn?
It was a week of decisive action by the U.S. government as it worked to fix the problems affecting Wall Street and the ever expanding global economic unrest. Earlier this week, President Bush announced a historic and reworked financial-rescue plan, confirming that the U.S. will take equity stakes in nine banks (among them Bank of America, Citigroup, JPMorgan Chase and Wells Fargo, to name a few), backstop virtually all non-interest-bearing bank accounts and guarantee most new loans between banks.
The White House plan marks the first such deep government intervention in markets since the Great Depression.
The plan found support among economists and experts. “This is finally the comprehensive and detailed plan that the market has been looking for,” said Jaret Seiberg, financial institution analyst for the Stanford Group. “It addresses the biggest problems that banks face, which is a capital crunch, and it attempts to fix the short term debt markets, plus it reduces the risk of liquidity runs on banks. That’s a pretty powerful first punch.”
In layman’s terms, this plan means that the government will now own a stake in several private U.S. companies—something that has many Americans rightfully concerned—though for now provides a stable backing in an effort to increase the availability of financing for consumers and businesses. Without this backing, consumer and business spending was shrinking which ultimately leads to businesses cutting jobs or worse yet, closing their doors. In theory, this plan should allow us to restore more normal market functioning and (hopefully) reinvigorate the financial markets.

One day after announcing his plan, the Dow tumbled to its second worst session ever on a point basis. The slide of 7.9% was the Dow’s 9th worst ever. In fact, according to CNNMoney, the decline wiped out $1.1 trillion in market value on the Dow Jones Wilshire 5000, the broadest measure of the stock market.



So what has this week’s rollercoaster ride on Wall Street meant for our local housing market? It seems consumers are over the initial shock of the current economic crisis and starting to realize that life will go on. Some continue to sit back and watch but others are emerging following a few weeks of silence. Let’s take a look…

Silicon Valley—There are two types of buyers out there right now—those who see this as an opportune time and are acting on it and those who have adopted the wait and see philosophy and are afraid to act. For the most part, our Silicon Valley offices are reporting that buyer interest has slowed with floor calls and open house activity decreasing. However, our San Jose Main office disagrees noting that buyer activity at open houses this week actually increased. The market that seems to be fairing the best is the entry level and continued success lies in the bank-owned arena where REO properties continue to generate multiple offers. There are two types of clients who are seeing success in today’s market (the rest languish so clients of all regions take note):
Buyers who see real estate as a long-term investment and this market, in particular, as an opportunity and are acting on it
Sellers who price their home right, stage it and are motivated

There is our market in a nutshell. Overall, things seem to be steady.

Bank owned properties continue to drive much of our activity. Make no bones about it, however, homes are selling. It just takes a little time, diligence and professionalism in today’s market.
Until next week. Make it a great one!

House passed the $700 billion Emergency Economic Stabilization Act of 2008!!

It Passed!

Second time was certainly a charm! With a vote of 263 to 171, the House passed the $700 billion Emergency Economic Stabilization Act of 2008 today. The Senate approved the same bill Wednesday night by a vote of 74-25. Soon after, the President signed the bill, officially passing the far-reaching legislation.

I know the question we are all asking ourselves right now is how is this going to affect all of us. How will it affect our retirements? How will it affect the mortgage crisis? How will it affect our portfolios? The answers to these and other questions will only be answered over time but what I can tell you is that the legislation is a critical step toward stabilizing our markets. The main goals of the act are to:

- Shine a new light of scrutiny and accountability on Wall Street including a curb on executive pay for companies selling assets or buying insurance from Uncle Sam. For example, any bonus or incentive paid to a senior executive officer for targets met would have to be repaid if it's later proven that earnings or profit statements were inaccurate. The bill also underlines the Securities and Exchange Commission's power to change accounting rules on how banks and Wall Street firms value securities, and directs the agency to study the issue. Some observers argue that tight accounting rules are a major reason for the credit crisis in the first place. Others contend that changing the so-called mark-to-market rules will just bury problems lurking beneath the surface and could further shake investor confidence in the already battered financial sector.
- Let financial institutions sell to the government their troubled assets, mostly mortgage related which would allow the Treasury access to the $700 billion in stages, with $250 billion being made available immediately.
- Provisions that support taxpayers including one that would direct the President to propose a bill requiring the financial industry to reimburse taxpayers for any net losses from the program after five years. And the Treasury would be allowed to take ownership stakes in participating companies.
- The bill would set up two oversight committees. A Financial Stability Board would include the Federal Reserve chairman, the Securities and Exchange Commission chairman, the Federal Home Finance Agency director, the Housing and Urban Development secretary and the Treasury secretary. A congressional oversight panel, to which the Financial Stability Board would report, would have five members appointed by House and Senate leadership from both parties.
- The bill calls on federal agencies to encourage loan servicers to modify mortgages by a number of means - including reducing the principal or interest rate. It also extends a temporary provision that exempts from federal income tax any debt forgiven by a bank to a borrower in a foreclosure.
- Provide tax breaks for the middle class including three key tax elements. It would extend a number of renewable energy tax breaks for individuals and businesses, including a deduction for the purchase of solar panels. The legislation would also continue a host of other expiring tax breaks. Among them: the research and development credit for businesses and the credit that allows individuals to deduct state and local sales taxes on their federal returns. In addition, the bill includes relief for another year from the Alternative Minimum Tax, without which millions of Americans would have to pay the so-called "income tax for the wealthy."

I agree with NAR’s stance on this subject that we are gratified that the government recognized the importance of passing the Emergency Economic Stabilization Act of 2008. The health of the nation’s housing market is critical to the financial well being of every household in the country and that, of course, is front and center here in California. I believe the legislation will help restore the liquidity in the mortgage market, which will stabilize the housing market and protect home owners.

With this good economic news now in our hands, let’s take a look at last week in real estate:
- Peninsula—People seem to be unsure during this uncertain economic times but savvy buyers are contacting their Agents and many feel now is the perfect time to make an offer. We are starting to see more upper-end listings come on the market which is a good thing as our upper-tier has been plagued by low inventory. Half Moon Bay is reporting that listings are up at the highest level in several years and at the same time there are at least six distressed properties on the market. According to our Half Moon Bay Manager, “This is the best time to buy on the coast in years.” Our Menlo Park El Camino office called this market “A tale of two buyers…Confident and not confident.” It’s business as usual for those who have confidence and those who don’t may miss out on one of the best buyer’s markets in generations.
- San Francisco—Our Lakeside office is noting that we are getting more listings and navigating through more obstacles in transactions. Our Market Street office noted that some buyers backed off this week due to the issues in the finance sector but now that things have worked themselves out we expect them to return. Our Van Ness office noted that we remain on a reasonable pace for the current climate with five out of nine deals this week under $900,000 and one large sale for the week.
- Silicon Valley—Consumer confidence seemed to be hindered this week as many of our Silicon Valley consumers awaited news of today’s act. In doing so, this week floor calls slowed a bit as did open house activity. But I believe now that we can all get off the couch and away from our TVs (awaiting the act’s approval), we can get back to work and we’ll start to see more deals closing.


Overall I think this new Emergency Economic Stabilization Act of 2008 puts us on the right track. No, it isn’t an overnight answer but I believe the efforts of our legislation are pointing us in the right direction and are putting us on the right path towards long-term economic growth and long-term prosperity.

The government’s resolve to take action that is focused on fixing the credit crisis is to be commended, particularly because these major moves to add greater liquidity to the market should have a beneficial effect on homebuyers/sellers and the real estate industry as well. Keep in mind housing represents 20 percent of the GDP so it remains an important part of our national economy.

Let’s watch as the details unfold over the next few weeks and we’ll wait to see whether the $700 billion in aid is our nation’s answer to prosperity.

Until next week,
Monica

Feel free to pass this on to others too.

Silicon Valley Market Watch

Weekly Market Watch
September 8-14
They called it “Nightmare on Wall Street.” In the past two weeks, the government took over Fannie Mae and Freddie Mac, Lehman Brothers filed for bankruptcy and Merrill Lynch sold itself to Bank of America. If that weren’t enough, the Federal Reserve announced late Tuesday night that it was loaning $85 billion to American International Group (AIG).
Our nation’s financial system is in the midst of a massive shakeup, caused largely in part by this decade’s housing correction. Between 2002 and 2006, household borrowing grew at an average annual rage of 11%, far outpacing overall economic growth. Borrowing by financial institutions grew by a 10% annualized rate. Now many of those borrowers can’t pay back the loans, a problem that is exacerbated by the collapse in housing prices. They need to reduce their dependence on borrowed money, a painful and drawn-out process that can choke off credit and economic growth.
According to the Wall Street Journal this week, “At least three things need to happen to bring the deleveraging process to an end, and they're hard to do at once. Financial institutions and others need to fess up to their mistakes by selling or writing down the value of distressed assets they bought with borrowed money. They need to pay off debt. Finally, they need to rebuild their capital cushions, which have been eroded by losses on those distressed assets.”
Only time will tell how and when this shakeup will correct itself. Among the highlights:
"The pace of Bay Area home sales reversed its July uptick and dropped again last month, marking a return to the long-running waiting game that many potential buyers and sellers have been playing for more than a year.”
“A total of 7,232 new and resale houses and condos were sold in the nine-county Bay Area in August. That was down 4.7 percent from 7,586 in July, and down 0.9 percent from 7,299 in August 2007, according to San Diego-based MDA DataQuick.”
“Last month's sales total was the second-lowest for an August, behind 6,688 sales in August 1992, in MDA DataQuick's statistics, which go back to 1988. An "average" August had 10,031 sales, while the peak August in 2004 had 13,940.”
“At the county level, foreclosure resales ranged from 8.6 percent of resales in San Francisco to 61.3 percent in Solano County. In the Bay Area's other seven counties, August foreclosure resales were as follows: Contra Costa, 54.4 percent; Marin, 13.5 percent; Napa, 39 percent; Santa Clara, 24.7 percent; San Mateo, 16.6 percent; Sonoma, 41.6 percent.”
“The median price paid for all new and resale houses and condos sold in the Bay Area last month was $447,000, down 4.9 percent from $470,000 in July and down a record 31.8 percent from $655,000 in August 2007, according to MDA DataQuick.”
“Last month's median stood at the lowest point since January 2004, when it was $440,000. The median peaked at $665,000 in June, July and August of 2007.”
Waiting for the bright spot? Keep reading. There’s no question, the result of foreclosures have drastically hindered our median sales price in many of our markets. And for those sellers who are not under duress and are just looking to sell, they are forced to lower their prices dramatically just to compete.
But we knew that the housing correction posed the biggest risk to our economy and that our economy and our markets would not recover until the bulk of the housing correction was behind us. The good news is that we are in the midst of depleting much of our distressed inventory. With stats like 61.3% of sales in Solano County being foreclosure resales, 54.4% in Contra Costa and 41.6% in Sonoma County, we are starting to push through that negatively impacted inventory. And once we do, we will start to see a market rebound. No, it won’t happen overnight. But as it does, we will see first a leveling off and then, ultimately, an increase in marketing conditions.
So what has all of this week’s news done for our market? Honestly, people are concerned. I think we all are. This week’s news did nothing for consumer confidence which is why it is important that we remind our clients of the benefits of investing in real estate. Real estate is a strong, long-term investment and as long as our consumers keep that in mind, they may prevail in today’s market. Couple that with the fact that inventory levels are high, interest rates are low, the conforming loan limits have increased and prices have decreased substantially in many markets, we have one of the best buyers markets in decades. So buyers, if you’re considering buying, now may be the time!
So with this valuable insight in tow, let’s take a look at this week in real estate:
*Silicon Valley—Things are looking pretty bright for Silicon Valley real estate. Cupertino DeAnza notes that “things are picking up and there is a lot of optimism at the sales meeting.” Los Altos First Street reports that buyers are still lining up for a few select properties. We had one very nicely redone and staged Cupertino townhome listed at $588,000. The listing had 14 offers and sold in the mid $600,000s. Los Altos San Antonio reports that we are seeing more floor time activity including a walk-in that translated into a $3 million listing and a floor call on a $1.5 million listing. While the news throughout Silicon Valley seems to be good, San Jose Almaden did report that the Wall Street news was ruffling quite a few feathers and was causing concern for some. We’ll have to watch as this plays out over the next few weeks and I would once again caution would be buyers that despite the economic hardships that our nation is enduring right now, real estate remains one of the strongest investments that you can put your dollar towards.
Okay, so in looking at it, yes, the nation’s economic news did nothing for our wallets this week. Many of us are still sobbing over our investment portfolios. But as you can see, real estate has remained pretty stable in the face of the negative news on Wall Street. Overall I think buyers are starting to get the idea that it may just be time to get into the housing market and sitting on the sidelines may cost them plenty—in terms of higher prices, higher interest rates and less inventory—in the long run.

Have a great week!

Monica Manocha Re, CMRS

408 399 1495

*Your referrals are the lifeline of my business. Please let me know how I can help you or others you know with their real estate needs.

Weekly Bay Area Real Estate Update

Dear friends,
Here is a weekly report to keep you updated on the changes in the real estate market. Please feel free to pass this on to your friends, family & colleagues.
As you may know, earlier this week, Federal officials unveiled an extraordinary takeover of Fannie Mae and Freddie Mac, putting the government in charge of the twin mortgage giants and the $5 trillion in home loans they back.
As CNN pointed out, “The move, which extends as much as $200 billion in Treasury support to the two companies, marks Washington’s most dramatic attempt yet to shore up the nation’s housing market, which is suffering from record foreclosures and falling prices.”
Under this new plan, the government is stepping in to stabilize the mortgage market by taking conservatorship of the two entities. Essentially, the government will temporarily run Fannie Mae and Freddie Mac until they are on stronger footing.
So what does it mean for consumers? I see this is a positive step for our industry, one that should have a positive impact on consumers. The ultimate goals are to help stabilize the mortgage market, improve mortgage rates in the near term, improve consumer confidence and possibly spur some new housing demand.

NAR President Richard F. Gaylord responded to the news with this statement, “I commend Treasury Secretary Paulson and Federal Housing Finance Agency Director Lockhart for their bold actions to bring stability and continued liquidity to the nation’s mortgage market. Fannie Mae and Freddie Mac have always played a vital role in the U.S. economy by making fair and affordable mortgage loans available for home buyers and owners. Their critical mission must not be interrupted, and Sunday’s announcement goes a long way in making sure that does not happen.
“NAR believes that the announced plan will help restore confidence in the secondary mortgage market. We appreciate the steps taken to calm the market, make mortgages more widely available and protect taxpayers. This demonstrates that the government is clearly committed to keeping the flow of capital uninterrupted, which is crucial to the housing sector and the economy.”

Soon after the takeover was announced, Wall Street rebounded and interest rates dropped. Take a look at these excerpts from Tuesday’s USA Today article entitled Mortgage rates drop; investors applaud Freddie, Fannie rescue:
“Wall Street staged its biggest rally in a month Monday as stock investors bet that the government's move to seize and backstop the USA's two largest mortgage finance companies will help stabilize the housing market, thaw credit markets and boost the ailing economy.”
“The Dow Jones industrial average jumped 289.78 points, or 2.6%, to 11,510.74. But common shares of Fannie and Freddie were essentially wiped out, since common-stock shareholders are last in line in any claims.”
“Average rates on 30-year fixed-rate mortgages, which have hovered well above 6% for months, plunged from 6.5% Friday to near 6% Monday, says Bankrate.com, according to national overnight averages. And most analysts expect the government's takeover of Fannie and Freddie to extend that decline, at least in the short term.
“In part, that's because in taking control of the two companies, the U.S. Treasury will buy mortgage-backed securities, thereby driving their prices up and mortgage yields down. The takeover should also shore up confidence in Fannie and Freddie and the mortgages they own or guarantee.”

I truly believe that the government rescue of Fannie Mae and Freddie Mac is a good thing for our industry and a great thing for interest rates and consumer confidence. It will be interesting to watch it unfold over the next several weeks.

With this week’s good news in tow, let’s take a look at this week in real estate:
Peninsula—My Half Moon Bay colleagues are singing the tune of new listings. Traditionally they have just about 110 listings on the market on the coast. Currently they have 148 which means better, more quality choices for buyers. The high-end market of the Peninsula seems to be moving well. Menlo Park is reporting that they had both a $3 million and a $5 million sale this week. Palo Alto continues to be plagued by lower inventory but is noting that though the inventory is low, buyers are looking for the right property that is priced well. Unless a home is priced well and shows well, even in a market that has limited inventory, it will sit. Buyers want value no matter what market you’re in. Our Redwood City office saw the first signs of the Freddie Mac and Fannie Mae takeover noting, “Slow week though buyers who were on the fence are now deciding to purchase with the government takeover of Fannie Mae and Freddie Mac.”
San Francisco—Our anticipated post Labor Day serge is coming to fruition in the City! We had a total of nine multiple offers amongst our five San Francisco offices this week. Our Market Street office noted, “Of the three multiple offers we had, one property had not even reached the open market. We had 10 new listings come on the market this week ranging from a condo at $499,000 to units at just under $3 million.” Our Lombard office saw a big post Labor Day week, too, noting that one sale was pre-emptive for 15% over in the $2 million range. The Van Ness and Noriega offices have yet to see the post Labor Day bounce but are confident they, too, will soon feel it. Van Ness continues to report success in the upper-end.
Silicon Valley—As our Cupertino office points out, “Lots of enthusiasm! Let’s hope it translates into transactions!” We’re definitely seeing increased buyer interest right now. Pendings are up 121% over this time last year and inventory is down. But buyers are still cautious and slow to make offers. Our Los Altos San Antonio office points out that “Activity was way up from last week. Buyers seem to be out in full force at our open homes.” Our Saratoga office concurs, despite what they thought was going to be a slow week. “Although sales have been decreasing,” said Saratoga Manager Pat McKeany, “we experienced a spike in sales yesterday with nine being processed. Hopefully this is a sign of improvement. Additionally we had 10 offers on a well-priced Saratoga home.”


I know I said it last week, but now that Labor Day is over and everyone is back from vacation, I think we’re going to see a spike in sales. Couple that with the Fannie Mae, Freddie Mac takeover and we’re in a pretty solid situation heading into fall.

Have a great weekend,

Monica Manocha Re, CMRS
408 399 1495

Your referrals are the lifeline of my business. Please let me know how I can help you or others you know with their real estate needs.

Bay Area Real Estate Market Update

Attention market watchers,
Labor Day is behind us! Let the buyer flood gates open! Well, maybe that is a bit of an over exaggeration but now that the traditionally slow July and August vacation months are behind us, we do anticipate that sales will begin to pick up in September and October. This is typically the time of year in which serious buyers begin to take action—hoping to get into their new home before the holidays.

And now that clients have returned from their vacations and are homeward bound, we should see a pretty decent pick-up in sales activity. Of course, only time will tell but if history is any indicator, we are anticipating a more robust September than we saw in July and August.

Overall, the Bay Area housing market is running pretty steady as we head into fall. Certainly there are pockets in which sales activity is thriving thanks to REOs. And in certain markets like San Francisco, the North Bay and parts of the Peninsula, we are seeing a lot of activity in the upper end. But for the most part, generally speaking, the market is moving steady—erring on the side of status quo for a buyer’s market.

Homes are selling. But again, only those homes that are priced right, show well, are in a good location and are seen as a “value” to buyers in this market, are moving in a timely manner. Others tend to sit.

Buyers are perusing. Yes, perusing seems the most appropriate choice of words. Tis is one of the best buyer’s markets in more than a decade to buy and the good news is that many buyers are starting to get their feet wet through increased open house activity, increased floor calls and even an increase in pendings—with Santa Clara County last week reporting that pending sales were up 121% this week, year over year. Those wet feet, however, haven’t resulted in closed sales quite yet and only time will tell if they do.

So while we wait to see what becomes of the wet feet, let’s take a look at this week in real estate:

· East Bay—Still a lot of activity based on REOs. Short sales are finally starting to get approvals which will help to decrease some of our standing inventory. Lamorinda is reporting that it is “hot, hot, hot!” In fact, the office noted that listings aren’t lasting long and most are seeing multiple offers. Of course this is one of the few Bay Area markets that hasn’t felt the effects of REOs and short sales. Our Walnut Creek office is noting that some REOs in Antioch are receiving 10+ offers, with the accepted offer 10-15% over the asking price.
· Monterey County—This largely second home market enjoyed the benefits of the last three day weekend as potential buyers came to Monterey in droves, particularly in Carmel. A number of offers were written over the weekend and we are holding twice as many deposit checks than usual so things definitely seem to be picking up. We put a $3.5 million and a $4.5 million listing into escrow this week.
· North Bay—Our Southern Marin office is noting that activity is picking up with more listings coming on the market. This week, in fact, our Southern Marin office introduced five new Previews listings to the market and put one Previews listing ($2.7 million) in escrow that had been on the market for 400 days. Things are looking better! Sonoma County is still seeing a lot of lower-end, REO activity. One REO out of our Sebastopol office this week received 27 offers.
· Peninsula—We have noted a lot of serious and motivated buyers. Palo Alto is still feeling the effects of low—painfully low—inventory. But the good news is that they expect that even in the next few days to get some good, quality inventory brought it to spur some more buyer interest.
· San Francisco—We are waiting for the market to heat up! Multiple offers are a result of proper pricing, not market conditions. This is a good lesson for sellers that if you price your home properly and competitively, you may be able to generate some good, solid interest from buyers. We’re awaiting some exciting new inventory to come on the market in the next two weeks which will move us back into a more normal market for the City.
· Silicon Valley—I think we are all glad since everyone is back in school and work, Silicon Valley especially. Certain areas of Silicon Valley are dealing with the challenge of a lack of quality inventory which is driving would-be buyers back on to the fence. There just aren’t enough quality listings to attract buyers to the market. This should help to stimulate things for our Silicon Valley clients as right now, things are pretty quiet.
· South County—The REO market and lower priced homes continue to drive our South County market. We continue to see multiple offers on REOs and short sales.

Now that the holidays over, we have a lot to look forward to. The dog days of summer are behind us and now we can move forward to the more robust Fall selling season. Buyers, start your engines! Sellers, get ready to negotiate, be reasonable and prepared, and don’t forget to remain competitive.

Over $10,000 raised for Habitat for Humanity

The Malcolm & Manocha Group of Coldwell Banker hosted the Annual Habitat for Humanity Estate Sale & Auction on Saturday July 12th, 2008 which generated an fantastic response. With the support from local vendors and their hard work, they were able to raise over $10,000 in just 4 hours!
During the four hours they had an Estate Sale, Silent Auction and Live Auction of which the hottest item was use of the Bentley Fly Spur.

We are still selling Habitat for Humanity Raffle tickets for another two weeks so that you don't miss the chance to win fantastic prizes!!!

The Malcolm & Manocha Group is still taking monetary donations towards Habitat for Humanity and are always available to help you with all your real estate needs.

Monica & Brian

www.mmgproperties.com

Coldwell Banker & Habitat for Humanity - July 12th 2008

Join us for our Annual Coldwell Banker Estate Sale, Silent Auction & Live Auction
All our proceeds will be donated to Habitat for Humanity

Location: Coldwell Banker Los Gatos
221 Los Gatos Saratoga Rd
Los Gatos, CA 95032
Date: Saturday July 12th, 2008
Time: 9 am till 1pm

Don’t Miss our Live Auction @ 12pm

For more information on this event or donating items contact:

Monica Manocha
408 399 1495
monica.manocha@cbnorcal.com

What is going on the local Real Estate Industry?

What Industry Analysts Are Reporting?

• According to a May 22, 2008 RealtyTimes article entitled,
“Real Estate Outlook: Worst is Over,” “The housing market
offered some immediate hints of that recovery with new
home starts up by 8.2 percent last month [April, 2008] and
building permits up by 5 percent.”
• According to a May 20, 2008 Bay Area Home Sales Report
released by real estate news source DataQuick, “Bay Area
home sales edged up from a seven-month run of record lows
last month, indicating that mortgage availability and that an
increased number of fence sitters have decided they like
today’s lower prices.”
• The news outlet went on to report, “A total of 6,310 new
and resale houses and condos sold in the nine-county Bay
Area in April. That was up 28.8 percent from 4,898 in March
and down 15.3 percent from 7,447 for April 2007.” This
month-to-month jump was the strongest for any March/April
in DataQuick’s statistics, which go back to 1988.
• One of the country’s most prestigious groups of market
forecasters, the National Association of Business Economists,
says housing and consumer credit conditions will stabilize and
begin improving as the year moves on. Equally important, said
Ellen Hughes-Cromwick, chief economist at Ford Motor and
president of the association: The entire U.S. economy will
“slowly return to health” this year.
• During NAR’s Midyear Legislative Meetings and Trade Expo
held May 15-17, 2008, NAR Chief Economist Lawrence Yun
reported that “home sales have stabilized over the last seven
months and should increase slightly in the second half of
2008.”

Call us today @ 408 399 1495 and let us help you with your real estate needs.

Email us @ monica.manocha@cbnorcal.com today!

Coldwell Banker is now offering FREE consultations TOMORROW!

DONT MISS TOMORROW @ COLDWELL BANKER IN LOS GATOS!!
NO OLVIDE MANANA DE 10AM HASTA 2PM PAPA PUERTAS ABIERTAS! BUSQUE UN AGENTE PROFESIONAL DE BIENES RAICES! LLAME MONICA @ 408 399 1495

FREE CONSULTATIONS IN OUR OFFICE FOR PEOPLE W/O AGENTS.

VISIT US TOMORROW @
COLDWELL BANKER - LOS GATOS
221 LOS GATOS SARATOGA RD
LOS GATOS, CA 95030
408 399 1495
WWW.MMGPROPERTIES.COM

LOOKING FORWARD TO SEEING YOU THERE!

MONICA

Coldwell Banker is now offering FREE consultations for all

Coldwell Banker Residential Brokerage Launches ‘Puertas Abiertas’ Program to Provide Free Advice and Support for Hispanic Community.

SAN RAMON, Calif. – April 22, 2008 – On a recent Saturday, Coldwell Banker Residential Brokerage real estate agent Robert Aldana let it be known throughout the Hispanic community that he would be at his office should anyone want to stop by with real estate questions, get help with documents they didn’t understand, or get his assistance one on one with any other housing issue.

The host of a daily Spanish-speaking radio show called “Hablando de Casas,” Aldana referred to the Saturday event as “Puertas Abiertas,” translated “open doors.” His plan was to keep his door open for visitors from 10 a.m. to 4 p.m., but when he left for the office, he told his family he would probably be home by early afternoon. To his amazement, Aldana was greeted by a line of people out the door and around the corner at his Coldwell Banker Residential Brokerage office. His day didn’t end until 10 o’clock that night.

The tremendous popularity of that initiative has led Coldwell Banker Residential Brokerage, the Bay Area’s largest real estate company, to launch a sweeping new community outreach program called “Puertas Abiertas” to provide much needed help and support for Spanish-speaking residents on a wide variety of real estate issues – all at no cost.

Dozens of bilingual Coldwell Banker Residential Brokerage agents from Sacramento to Santa Cruz will be taking part in the program, agreeing to hold regular open-door sessions where they will provide free professional advice on real estate-related matters, as well as referrals to other professionals able to help Latino consumers who may need to seek advice regarding tax and legal issues.

Coldwell Banker Residential Brokerage executives said the issues facing Spanish-speaking residents range from relatively simple real estate and mortgage questions to much more serious financial matters, brought on by language barriers, cultural misunderstandings and sometimes by unethical business practices.

“What we’re trying to do is give these people an honest broker, if you will – someone who speaks their language and they can trust to provide clear, professional advice to help them out,” said Larry Klapow, president of Coldwell Banker Residential Brokerage in the San Francisco Bay Area. “There’s a real need for this in the community, and we believe that we can make an important difference in the lives of our neighbors through this program.”

The Puertas Abiertas initiative is part of Casa Coldwell Banker, the real estate brokerage’s overall effort to support Latino residents.

“Puertas Abiertas is one more way we can give back to the community that has helped build our success,” said Todd Mendoza, chairman of the Casa Coldwell Banker program. “We are proud to be that trusted member of the business community residents can come to, one that has a long history of service to our Northern California communities.”

The dates for the upcoming Puertas Abiertas sessions are May 17, June 21 and July 19. Coldwell Banker Residential Brokerage agent, Monica Manocha will be able to assist you.

For more information on the program contact Monica Manocha @ 408 399 1495 or email her @ monica.manocha@cbnorcal.com

Luxury market is still strong...

PARSIPPANY, N.J. (June 18, 2007) - Despite the recent cooling of the real estate market, luxury homeowners remain positive about the market, according to the 2007 Coldwell Banker Previews International � Luxury Survey. A full 56 percent of survey respondents expect the value of their home to increase at least somewhat, and 10 percent expect it to increase significantly, during the next 12 months. Thinking more long term, 36 percent of respondents believe the value of their primary residence to increase significantly over the next five years, while 58 percent believe their residence will increase at least somewhat over that time period.

"These responses tell us that the affluent truly understand the value in owning real estate," said Jim Gillespie, president and chief executive officer, Coldwell Banker Real Estate Corporation. "It is important to remember that in addition to being a home, real estate is a long-term investment, one that can withstand periodic changes in the market."


The survey also revealed that affluent women are even more optimistic than men. Sixty-one (61) percent of female respondents expect the value of their home to increase somewhat over the next 12 months, compared to 50 percent of male, while both genders remain even at approximately 10 percent in predicting their homes' value to increase significantly in the next year. Over the long term (five years), 40 percent of female respondents expect the value to increase significantly, compared to 32 percent of male. The sexes come out fairly even (60 percent male, 56 percent female) in forecasting that their homes will increase in value somewhat in five years.

You too can make a profit in this market, no matter what price range. Call today @ 408 399 1495 or email me @ monica.manocha@cbnorcal.com and let me help you get started.

Is it time to buy Real Estate?

This article is for everyone who is questioning weather or not to buy right now...

Is It Time to Buy Real Estate?
by Vicki GersonFriday

Investing in real estate used to be considered a "no brainer," a can't-miss investment.
But these days, this sure thing isn't so sure. Home prices keep falling. Standard & Poor tracking shows prices down 7.7 percent nationally in November 2007.

The National Association of Realtors, or NAR, reports that sales of single-family homes were down by 13 percent in 2007, the biggest drop since a 17.7 plunge in 1982.
Representatives of the NAR say that this makes it the best buyer's market in a long time. Prices are down, interest rates are near a 45-year low and the supply of houses is high.
More from Bankrate.com: • Creditors Can Check Your 'Work Number' • Time to Buy Stocks? • Selling Your Gold Jewelry, Coins, Fillings
But others argue that with the real estate market in a tailspin, it might be a very long time before prices rebound -- making it a poor market at this time.
Even those who advocate real estate investing concede that you need the right circumstances before you take the plunge.
Who Should Buy a Home?
"Dual-income customers should definitely buy a home now," says George Kaiser, vice president of banking operations for Northbrook Bank and Trust and West America Mortgage Co., its sister company. "People with assets in reserve and a credit score of at least 680 should buy as well. Anyone with a credit score less than that will have to verify their income."
Renters who have stable jobs might find this a good time to try homeownership because of the lower prices, says Scott Rose of Coldwell Banker in Deerfield, Ill.
William Chu, senior mortgage loan consultant, American Chartered Bank, suggests it's a particularly good time to look at the higher end properties if you can afford them because with the pool of buyers shrinking, upper market sellers are lowering their prices to attract a larger pool.
"So if you qualify, you could purchase a more expensive home at a much lower price than you could a few years ago," he says.
However, as always, consumers need to shop intelligently, avoid risk and buy what they can afford.
Kaiser warns that potential homebuyers must not get in over their heads. They should feel comfortable with their mortgages and be confident they can handle the payments along with taxes and insurance.
Those with lower credit scores will find it a little tougher.
"If you have some credit challenges or less than 20 percent down, be prepared for higher interest rates due to risk-based lending," says Rose.
Who Should Not Buy Now?
While prices are more attractive these days, not everyone should be in the market.
"There is no hard and fast rule that applies in all cases, whether it be a good market for real estate or a down market, such as we are currently experiencing," says Valerie Anderson-Jones, CPA, JD, CVA at Kessler Orlean Silver & Co. PC. "Tax advantages can make the ownership of real estate quite appealing, but the decision whether or not to own a home should be based on many factors.
"The size of the down payment and resulting mortgage will play a large part in this decision, as well as the amount of any other assets and debt one currently has."
Brent Kalka, Certified Funds Specialist, or CFS, and financial adviser at Mueller Financial Services Inc., Elgin, Ill., points out there are times a person or couple should not consider buying in this market.
"For example, if a retired couple is thinking of selling their home in order to downgrade and gets less than fair market value, they will lose more financially then what they gain by getting a good deal on a less expensive house and are better off financially by waiting until the market turns around."
A second consumer who ought not consider changing residences is a homeowner who, prior to the market downturn, had 20 percent equity in their home and didn't have private mortgage insurance, or PMI payments.
"With home values down," he says "their equity has dropped, and they no longer would have the 20 percent down payment necessary in a lateral or upgrade purchase to avoid PMI, which can run anywhere from $50 to $150 per month."
Kalka also believes that potential homebuyers should consider the fact that the real estate market could be no better or even worse a year from now, so they have to decide if they want to wait it out.
People whose jobs are shaky should wait until their situation is more secure.
"To buy on what you are making now if future income is not stable is asking for trouble," Rose says.
Also, if you are experiencing a life change, such as an upcoming job transfer, getting married, planning to move geographically within the next two years or struggling financially, you should wait.
"People who are thinking of flipping a home should not buy," says Walter Molony, spokesman for the National Association of Realtors. "Housing is a long term investment, and if you're only planning to be there for a year or two, keep renting."
According to Karen L. DeRose, CFP, DeRose & Associates, Chicago, renovating and flipping homes is much harder today and not something she is recommending to any of her clients. She says several of her clients now have to sit on these properties and the gains they thought they would get have been eaten away by the decline in home prices.
People with heavy credit card debt should not consider buying now. "They must clean up their credit first," Chu says.
Should You Buy a Home in Foreclosure?
The Census Bureau reported that the number of vacant homes in 2007 climbed to 2.8 million from 2.07 million. This is the biggest one-year jump on record. What does that mean to potential homebuyers?
Although property is available, Marsha Schwartz, a broker associate from Coldwell Banker Residential Brokerage in Northbrook, Ill., and Rose believe that buying a home in foreclosure can be a challenge and not always a good deal. Sometimes the home has been neglected for a long time due to financial reversals. Be prepared to invest money in the property.
Before you purchase it, have a professional inspection done, even though most of the time the home is being sold "as is." It also pays to research comparable prices to make sure the price of the foreclosure is significantly below values in the area.
"You can always buy a home in foreclosure, but it depends on how much the lender is willing to lose to get rid of the property," Kaiser adds. "Sometimes you can get a good deal."
Is Raw Land or Commercial Real Estate a Good Alternative Now?
"Now is a great time to acquire land, because when you look at the residential market, many homebuilders are looking to get their existing inventory off the books," says Ben Reinberg, Alliance Equities LLC, headquartered in Chicago.
"However, if you are going to buy land, you must have the ability to hold that piece of land until you have an opportunity for the next cycle to come around."
When purchasing land, investors should investigate if it has sewer and water, what type of zoning it has and what you can do with it as well as the location of the property. When buying a piece of land, lenders require 30 percent to 60 percent equity depending on where it's located and what the selling price is.
Reinberg believes if you have the opportunity to purchase the land at a discount (less than it would have sold for three to five years ago), buy it.
"There will be opportunities to buy land within the next 12 to 18 months, especially if we go into a recession," Reinberg says. "The market is correcting itself, and was very inflated. Now it's adjusting."
In addition, Reinberg expects the rental market to be strong compared to the condo market, so multifamily properties will be in strong demand as well.
But he does issue a word of caution. "Be careful what you buy in this down market. Due diligence is important, and if you are a novice you may want to hire a commercial real estate broker."
Why Not Wait Until the Economy Turns Around?
"If you wait till the economy turns around, the interest rates may not be as favorable, nor in all probability will there be as much inventory," says Schwartz.
She feels it's hard to predict when the market will bottom out, just as you can't predict when a stock has "bottomed out" until it has started to rise again.
Homes are starting to sell because prices have been lowered, but Kaiser doesn't anticipate home prices dropping much more. Interest rates are also dropping, and that is changing consumers' outlook.
When Will the Housing Market Turn Around?
The National Association of Realtors is projecting that home sales will trend up this year.
"The timing of the recovery is a bit ambiguous because there are buyers looking for a bargain, while others are looking for more signs of stability. Still others are looking for interest rates to keep lowering, with prices still bottoming out in their area," says Molony.
However, he suggests the window of opportunity for buying is within the next six months.
But there is serious disagreement on that point.
"Overall my consensus is to wait another year to see how the housing market settles and see how capital gains plays out," says DeRose. She bases her thoughts on the fact that Census Bureau Data indicates this is the highest housing inventory in history with 17.9 million housing units available. In addition, foreclosures are at an all time high.
"I am recommending to my clients that they do not purchase another home or one on contingency unless their home sells first. Otherwise, they could end up carrying two mortgages."
"Over all, the real estate market won't be strong till the spring of 2009," says Bob Mecca, CFP, MBA, RIA, of Robert A. Mecca & Associates LLC. He recommends that people look now, establish a list of priorities and amenities and do their homework. Then, negotiate.
"Of course, Realtors will say to buy now, but the investment has to make sense and have appreciation potential," he adds.
Mecca believes people should wait and see if the economic stimulus package takes hold as well as keeping an eye on the Federal Reserve rate. "If the Fed starts hinting that interest rates are done with, then is the time to start investing and flipping homes."
"Many people believe that the earliest turn around will be in the second half of 2008," Schwartz says, "while others believe it will not be till the first half of 2009. Other people think people will have a wait and see attitude until after the presidential election, which would prolong the market turnaround."
The bottom line, Molony points out, is that all real estate is local, and people need to understand what is going on in their local market area before they buy. Internet research is an important first step, and you need to know if it is a buyer's or seller's market locally or if it is balanced.
Molony projects that home prices will stay flat this year, but 2009 will lead back to more normal market conditions with prices rising 3.1 percent.

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Copyrighted, Bankrate.com. All rights reserved.

Tips for existing sellers...

Selling a home while you're living in it can be trying during any market. Today's sellers are generally looking at a longer marketing time than was the case a few years ago. Appropriate pricing for this changing market can shorten the misery. So can taking a few precautions.
The houses that look the best are the ones that get serious attention from buyers. Preparing a house for sale is more important than ever. Keeping it in pristine condition can be a challenge, particularly for sellers with small children and pets.
One benefit of decluttering your home before you try to sell it is that you'll have less to clean up before a showing. Some sellers find it helpful to keep everyday essentials like toothbrushes and children's favorite toys in plastic tubs. These can be hidden in a closet, under a sink or under a bed and brought out when the public is not around. Before showings, the tubs can be quickly filled and stashed away.
Your house should look its best when a prospective buyer comes through, so set up a showing procedure that requires agents to call in advance to let you know when they're coming. This way, you'll have time to straighten up the house before it's shown.

HOUSE HUNTING TIP: Don't be too restrictive with showings. It's difficult to sell a house that can't be shown. You need to strike a balance between accommodating buyers and saving your sanity. If a buyer wants to come on short notice, at a time that's inconvenient, ask if it's possible to reschedule. But keep in mind that some of the best buyers are relocating from elsewhere and may not have much flexibility in their schedule.
Most experienced real estate agents advise sellers to leave their home when it's being shown to prospective buyers. Sellers should also be absent during open houses. The reason for this is that a seller's presence can stifle a showing.
Buyers need to critically examine a property before they can decide to buy it or not. This is an important part of the sale process. It's difficult for most buyers to talk frankly with their agent about a listing if the seller is home.
There will be times when leaving the house is out of the question. In such cases, make yourself scarce. Take a walk in the neighborhood; take the dog with you; or work in your home office. Don't follow the buyers around your house pointing out attractive features. Leave this work to the agents.
Even though you may enjoy entertaining, try to keep home life simple while your house is on the market. Don't plan big events and children's sleepovers at your home. Taking the family out for dinner can provide a nice break, especially if buyers want to see your house after work.
Agents should not show up unannounced if the showing instructions in the Multiple Listing Service (MLS) indicate that agents are to call the sellers before showing the house. However, if this happens more than once or twice, one option is to ask your agent to remove the lock box and leave it with you to put out when an agent makes an appointment. You don't need to let an agent in who hasn't followed the MLS instructions.

In Conclusion: For some properties, and in some areas, it's appropriate for the listing agent to show the property to buyers and their agents. However, this can restrict showings. The buyers will not only need to coordinate their schedules with their agents' schedules, they also need to find a time that works for the listing agent.


Let us help you sell your home when you are ready! Call me @ 408 399 1495 or email me @ monica.manocha@cbnorcal.com and let me help you get top dollar for your home!

Micro Markets?

The Silicon Valley Real Estate Market is really composed of many "micro markets". What is happening in Los Gatos is not the same thing as is happening in Morgan Hill or in Palo Alto.And, in fact, what's happening in one part of Los Gatos is very different from what is happening in another, just as west San Jose is extremely different from south San Jose.

And, in fact, what's happening in one part of Los Gatos is very different from what is happening in another, just as west San Jose is extremely different from south San Jose.

Blossom Valley (a district within San Jose) has two zips: 95123 and 95136. They are performing similarly right now. Cambrian Park (another area in San Jose) is mostly in two zips, 95124 being the larges, but also 95118 and a little sliver of 95008 (which is mostly in the City of Campbell). Los Gatos is a little more complicated. The mountain communities have the zip of 95033 but they truly march to the beat of a different drummer and are not part of the town. The area that is "in town" is 95030 and 95032. To complicate things, there are multiple school districts in LG (this is the case all over Silicon Valley - the school boundaries do not follow the town boundaries). What amazed me was to see how vastly different the town's realty situation was from one zip (and one school district, for the most part) to the other.

And please call me @ 408 399 1495 for hyper local real estate information in San Jose, Silicon Valley, Santa Clara County! EMail me @ monica.manocha@cbnorcal.com and let me help you understand whats happening in your zip code!

Did you know?

Facts you should know about real estate in the Silicon Valley...

• A lot of people were out of market a few months ago. They wanted absolutely nothing to do with the market. Now they are seeing it as being a little friendlier. And those people are seeing interest rates rise and know they need to get serious about buying now.
• If you look at the statistics over the past 20 years, this time of year you are going to find what is happening is absolutely normal. It's not a bad market. It's a normal market.
• As of April 14th, in the Santa Clara County the inventory for active listings of single family homes is 5378 and condo/townhomes is 1755. Totaling 7133 for both. The number of homes and townhome/condos that went into contract over the last 30 days was 1320. The pending sales are about double the January figures. The number of closed sales in April is 281 (as of 4/14).
• Something of interest - since the beginning of the year the listings have increased 23%, however, the number of pending sales has increased 73.6%. There have been 14 weeks of increasing sales! Currently 18.4% of the inventory is pending. So don't believe everything the media is saying about this market!

Call me today and let's talk about how you can take advantage of this market.

Email me @ monica.manocha@cbnorcal.com or call me @ 408 399 1495

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5 Signs of a Housing Market Pickup

How do we know the market is picking up? Here are our top 5 reasons:

1. More new jobs vs. New housing
2. Fewer builder concessions
3. Months' supply of homes is increasing
4. The amount of visitors viewing a house and how long they are staying there
5. Rising apartment rents

Call us today and lets talk about this market and how we can help you!

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What is PMI?

All lenders do not require you to put down 20% on a home purchase, but if you do put anywhere from 5-15% down they require you to pay Private Mortgage Insurance (PMI). Plus, there are going to be other expenses that you will pay in cash @ closing.

PMI is typically rolled into a monthly mortgage payment(0.5 to 1% of the entire amount annually).

Once you have 20% or more equity in your home, request in writing from your lender that you no longer need the PMI.


We hope you found this information helpful.

Call us @ 408 399 1495 or email me @ monica.manocha@cbnorcal.com and lets talk more about your real estate needs...

Monica
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Overnight Drop in Real Estate Rates

Long-term mortgage interest rates fell again Friday, and the benchmark 10-year Treasury bond yield decreased to 3.47 percent.
The 30-year fixed-rate average sank to 5.65 percent, and the 15-year fixed rate dipped to 5.23 percent. The 1-year adjustable rate slipped to 5.68 percent.
The 30-year Treasury bond yield was down at 4.31 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
In other economic news, the Dow Jones Industrial Average lost 16.61 points, or 0.13 percent, finishing at 12,609.42. The Nasdaq rose 7.68 points, or 0.32 percent, closing at 2,370.98.
Stock figures are current as of 7:30 p.m. Eastern Standard Time.

It is a great time to buy and allow us to help you find the right home.
Please call us @ 408 399 1495 or email me @ monica.manocha@cbnorcal.com

Whats happening in Los Gatos?

The State of the Market in Los Gatos
Properties in Los Gatos continue to appreciate - a 5.6% price gain was seen in March over February of this year. According to Yahoo Real Estate, there are 182 homes for sale through the MLS at a median price of $1,399,990, and 277 homes for sale through classifieds at a median price of $1,750,000. There are only 37 foreclosures at a median price of $260,000 - in the prestigious Los Gatos market, that means they are mobile homes as even condos run about $600k-900K.
What’s great about this is that many homes in the surrounding areas, such as the 95124 area of San Jose and parts of Campbell, are buoyed upwards by the Los Gatos mystique. At the very least, they are not falling as fast as other areas of the South Bay.
What’s so special about Los Gatos? Los Gatos is the last Silicon Valley town you pass through before entering the Santa Cruz mountains, making it closer to the beach and great hiking than other South Bay towns. The school system is excellent, local restaurants are quaint and homey while providing great cuisine, and the downtown area is full of fascinating antique shops and boutiques. Joe Dimaggio and Marilyn Monroe even stayed here once, after their San Francisco wedding!
Another reason that property values are rising in Los Gatos is that no new mega developments are happening here. When massive low cost condos are built in an area, it creates downward pressure on existing homes.

Call us @ 408 399 1495 to talk about Real Estate in your area. Visit us online @ www.mmgproperties.com

Children's Education & Real Estate..

This week, the San Jose Mercury News has released its monthly data showing home prices and sales throughout the Silicon Valley. Upon reviewing this extensive data, we see some clear trends and information that home buyers can use in planning their next purchase.
Areas with good school districts such as Cupertino and Los Gatos appear relatively unaffected by the current home price plunges. Cupertino shows a 6.9% increase in price per square foot. Los Gatos shows a 1-3% increase based on area code, but Mountain View showed a whopping 66% increase in price per square foot in the prestigious 94040 area code. Children in this district attend Mountain View High - which has shown dramatic improvement in test scores and other accolades in the past several years.
Most San Jose area codes have shown a plunge in per square foot prices - with some reprieve shown those close to and zoned into prestigious Campbell, Los Gatos, or Cupertino school districts.
It is clear that as a Bay Area community - the quality of our children’s education rates second to none!!!
Another telling statistic is that sales of older homes continue to decline - resale home prices across Santa Clara County fell by 44.6%, while prices of newer homes have only declined by 40.3%. Is this number statistically significant? Most statisticians would say that it isn’t - but I think it shows that at least some buyers view newer homes as being more energy and power efficient, and more worthy of investment in these tough times.

Call us today to schedule your FREE Comparative Market Analysis and talk real estate.
Email us @ monica.manocha@cbnorcal.com or call us @ 308 399 1495

Huge Spike in March Sales!!

Let’s Celebrate! Huge Spike In March Sales
The first of April brings great news to the financial and housing markets. The Visa IPO came out of the gate in mid-March and blew away any competition, raising about $20 billion dollars and helping the stock market recover in time to enjoy NCAA March madness. S&P/Case-Schiller statistics for March show a 44% increase in home sales over February 2008, and an overall 21% increase over this same time last year. This is just what everyone was hoping for: sellers should be happy, buyers should be happy, and even lenders should be happy. And, of course, it’s what the National Association of Realtors foretold (and has been touting on television ads).

Call us today @ 408 399 1495 to allow us to help you with all your real estate needs.
Visit us online @ www.mmgproperties.com TODAY!!

Prices start to rise in February...

Median Prices Rise in February
Trends at a Glance

The median prices for single-family, re-sale homes and re-sale condos gained ground last month. The median price for homes rose 5.1% from January, a year-over-year loss of 1.5%. This is the first year-over-year loss since August 2003. The median price for condos rose 13%, month-over-month, and was up 6.7% compared to February 2007.
Sales of single-family, re-sale homes bounced back from the record low set in January. There were 424 homes sold last month, a rise of 25.8% from the month before, down 36.2% from last February. Condo sales rose 2.2%, but were off 56.9% year-over-year.
Inventory continues to increase as we enter the spring selling season. The number of homes on the market rose 11.1% compared to January, and up 72.9% year-over-year. Condo inventory rose 8.7% month-over-month, and was up 61.7% compared to last February.
The sales price to list price ratio for single-family homes rose 0.6 of a point to 98.2%. The ratio for condos fell 0.2 of a point to 97.9%.
Days on market fell six days to 81 for homes. Days on market for condos was flat at 85 days.

Still wanting more information???

Lets talk about the market and how we can help you!

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Make it a great weekend!

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