The market is changing every day in the Bay Area.
Have you made an appointment to discuss your real estate situation, when it comes to buying a home today? Do you know your current credit score? Do you know the current mortgage rate for your financing situation? Do you want to take advantage of the $8000 credit for the new homebuyers?
Now is the time to call us and talk about your personal real estate situation.
We are a one stop shop for all your real estate needs.
Visit our website @ www.monicamanocha.com
or call us @ 408 399 1495
Friday, September 18, 2009
Thursday, July 30, 2009
3 year housing price descent is at the end...
According to recent reports and forecasts by housing analysts, the three-year descent in home prices appears to be at an end. Eight cities, including San Francisco, showed price increases in May, up from four in April, and one in March, according to Standard and Poor’s/Case-Shiller Index.
For the first time since early 2007, the index of 20 major cities was virtually flat, rather than down.
MAKING SENSE OF THE STORY FOR CONSUMERS · Earlier reports show that sales of existing homes nationwide rose last month for the third consecutive month, while sales of new homes increased in June by the largest percentage in eight years, according to the NATIONAL ASSOCIATION OF REALTORS® (NAR) and the U.S. Commerce Dept., respectively. · Although some skeptics believe the market is pausing before home prices decline further, the median price in California’s housing market appears to be stabilizing. June marked the fourth consecutive month of rising home prices and the second largest gain on record for the month of June, based on statistics dating back to 1979. The year-to-year decline in June also was the smallest in the past 16 months. ·
The S&P/Case-Shiller price index for 20 cities showed a half-percent gain when May was compared with April. It was the first month-over-month increase in the index in 34 months. “It is very possible that years from now we will say that April 2009 was the trough in home prices,” said Maureen Maitland, vice president for index services at Standard & Poor’s. ·
One explanation for the increase in median prices is the rise in demand from buyers, especially first timers taking advantage of the $8,000 federal tax credit, which expires in December. The NATIONAL ASSOCIATION OF REALTORS® (NAR) is lobbying for the tax credit to be extended and to be replaced with a $15,000 credit for all buyers. ·
Another factor in the market’s resurgence is the prevalence of foreclosures, which make up about a third of all existing home sales. “Although another surge of foreclosures is expected later this year, demand remains strong, so the market may be able to absorb more distressed properties without significantly impacting the median price,” said C.A.R.’s Chief Economist Leslie Appleton-Young.
For more information call 408 399 1495
For the first time since early 2007, the index of 20 major cities was virtually flat, rather than down.
MAKING SENSE OF THE STORY FOR CONSUMERS · Earlier reports show that sales of existing homes nationwide rose last month for the third consecutive month, while sales of new homes increased in June by the largest percentage in eight years, according to the NATIONAL ASSOCIATION OF REALTORS® (NAR) and the U.S. Commerce Dept., respectively. · Although some skeptics believe the market is pausing before home prices decline further, the median price in California’s housing market appears to be stabilizing. June marked the fourth consecutive month of rising home prices and the second largest gain on record for the month of June, based on statistics dating back to 1979. The year-to-year decline in June also was the smallest in the past 16 months. ·
The S&P/Case-Shiller price index for 20 cities showed a half-percent gain when May was compared with April. It was the first month-over-month increase in the index in 34 months. “It is very possible that years from now we will say that April 2009 was the trough in home prices,” said Maureen Maitland, vice president for index services at Standard & Poor’s. ·
One explanation for the increase in median prices is the rise in demand from buyers, especially first timers taking advantage of the $8,000 federal tax credit, which expires in December. The NATIONAL ASSOCIATION OF REALTORS® (NAR) is lobbying for the tax credit to be extended and to be replaced with a $15,000 credit for all buyers. ·
Another factor in the market’s resurgence is the prevalence of foreclosures, which make up about a third of all existing home sales. “Although another surge of foreclosures is expected later this year, demand remains strong, so the market may be able to absorb more distressed properties without significantly impacting the median price,” said C.A.R.’s Chief Economist Leslie Appleton-Young.
For more information call 408 399 1495
Monday, July 27, 2009
A Tax Credit for 1st time Homebuyers?
2009 Tax Credit for First Time Home BuyersWould you like $8000 back on your taxes this year?
We've been hearing a lot of questions about the new tax credit. Who qualifies? How does it work? How long will it last? In this special edition video, weAccording to the new legislation, a first time home buyer is defined as someone who has not owned a principle residence in the past three years. Those three years are counted up to the date you take possession of the house you buy in 2009. This means that even if you’ve owned a home in the past, you can still take advantage of the tax credit as long as you haven’t purchased a primary residence since 2006.The same goes for married tax payers - they must both be first time home buyers. For non-married joint buyers, only one of them needs to be a first time home buyer, or someone who hasn’t owned a primary residence in the past three years.Qualifying homes include: New Homes, homes that are being sold, condos & townhouses.
http://www.facebook.com/ext/share.php?sid=109119643020&h=4xsDG&u=uHIZ-&ref=nf
Call me today and let me help you with your real estate needs!
408 399 1495
We've been hearing a lot of questions about the new tax credit. Who qualifies? How does it work? How long will it last? In this special edition video, weAccording to the new legislation, a first time home buyer is defined as someone who has not owned a principle residence in the past three years. Those three years are counted up to the date you take possession of the house you buy in 2009. This means that even if you’ve owned a home in the past, you can still take advantage of the tax credit as long as you haven’t purchased a primary residence since 2006.The same goes for married tax payers - they must both be first time home buyers. For non-married joint buyers, only one of them needs to be a first time home buyer, or someone who hasn’t owned a primary residence in the past three years.Qualifying homes include: New Homes, homes that are being sold, condos & townhouses.
http://www.facebook.com/ext/share.php?sid=109119643020&h=4xsDG&u=uHIZ-&ref=nf
Call me today and let me help you with your real estate needs!
408 399 1495
Thursday, July 23, 2009
Bay Area Home Sales on the Rise!!
The number of homes sold in the Bay Area in April was
higher than a year ago for the eighth month in a row while
the median price fell 41.3 percent to $304,000 as bargainpriced
foreclosures continue to dominate the market.
While the median prices is down significantly from a year
ago, it edged up slightly on a month-to-month basis for the
first time in almost two years, said the report released
Thursday by MDA DataQuick Information Systems.
In April, a total of 7,139 new and resale houses and
condominiums closed escrow in the Bay Area, a 12.9
percent increase from March and a 13.1 percent gain from
March 2008. The 13.1 percent year-to-year gain for home
sales is significantly smaller than the 29.1 percent year-toyear
gain reported for March home sales.
Last month's median price was 4.8 percent higher than in
March, the first time there was a month-to-month gain
since October 2007, when the median price increased 1
percent from September 2007.
From March to February and from March to April, the
median sales price reflected a 1.7 percent drop, compared
to an average month-to-month decline of almost 5 percent
in the 12 months ending in January 2009.
"When you see units up and prices going up it points
toward stabilization and it's very encouraging," said Rick
Turley, president of Coldwell Banker Residential Brokerage
in the Bay Area.
A lower concentration of discounted foreclosure resales
helps explain why the median sales price has begun to
stabilize, the DataQuick report said.
That said, Turley and other real estate observers expect
more foreclosures to come onto the market in the coming
Bay Area home
sales rise again
months now that temporary foreclosure moratoriums have
ended. More foreclosures could drag down median prices,
which is the point at which half of homes sell for more and
half sell for less.
In April, 47.4 percent of existing home sales in the Bay
Area involved properties that had been foreclosed upon
at some point in the last 12 months, compared to 50.2
percent in March and 52 percent in February.
Turley pointed out that the recent slowdown in foreclosure
sales is likely the result of foreclosure moratoriums that
were in place until the end of March. Now that the
moratoriums have been lifted, expect to see more foreclosed
properties to be put on the market, he said.
For more information on this article, call me today.
Let's talk about your real estate situation.
higher than a year ago for the eighth month in a row while
the median price fell 41.3 percent to $304,000 as bargainpriced
foreclosures continue to dominate the market.
While the median prices is down significantly from a year
ago, it edged up slightly on a month-to-month basis for the
first time in almost two years, said the report released
Thursday by MDA DataQuick Information Systems.
In April, a total of 7,139 new and resale houses and
condominiums closed escrow in the Bay Area, a 12.9
percent increase from March and a 13.1 percent gain from
March 2008. The 13.1 percent year-to-year gain for home
sales is significantly smaller than the 29.1 percent year-toyear
gain reported for March home sales.
Last month's median price was 4.8 percent higher than in
March, the first time there was a month-to-month gain
since October 2007, when the median price increased 1
percent from September 2007.
From March to February and from March to April, the
median sales price reflected a 1.7 percent drop, compared
to an average month-to-month decline of almost 5 percent
in the 12 months ending in January 2009.
"When you see units up and prices going up it points
toward stabilization and it's very encouraging," said Rick
Turley, president of Coldwell Banker Residential Brokerage
in the Bay Area.
A lower concentration of discounted foreclosure resales
helps explain why the median sales price has begun to
stabilize, the DataQuick report said.
That said, Turley and other real estate observers expect
more foreclosures to come onto the market in the coming
Bay Area home
sales rise again
months now that temporary foreclosure moratoriums have
ended. More foreclosures could drag down median prices,
which is the point at which half of homes sell for more and
half sell for less.
In April, 47.4 percent of existing home sales in the Bay
Area involved properties that had been foreclosed upon
at some point in the last 12 months, compared to 50.2
percent in March and 52 percent in February.
Turley pointed out that the recent slowdown in foreclosure
sales is likely the result of foreclosure moratoriums that
were in place until the end of March. Now that the
moratoriums have been lifted, expect to see more foreclosed
properties to be put on the market, he said.
For more information on this article, call me today.
Let's talk about your real estate situation.
Wednesday, June 3, 2009
Bay Area Real Estate Bubble?
Bay Area Real Estate - Has the Bubble Burst or is the Hype a Bust?
The local and national media are "blowing the bubble" out of proportion. Listen to the experts and read the statistics as reported by NAR (National Association of Realtors) and CAR (California Association of Realtors). The reality is that the market is balancing out, normalizing, flattening a bit, but experts are still predicting a continued appreciation (at least 10% if not more, compared to 20% + enjoyed here in recent years). Of course, there are no guarantees and no one knows for sure.
As a Realtor in the East Bay Area of California, I am seeing some price reductions on properties that have been on the market over a month, but this is because it is a Buyers market now. Agents are trying to find a starting price point after coming off of years of "throwing any price out there and getting it." Good agents do their homework and put a realistic price on the house in the first place, thus eliminating the need to broach the subject of price reduction with the Sellers. Since the Sellers ultimately call the shots,if they are properly educated on the current market (not the market 2 months ago or 6 months ago) then they are more apt to be realistic and follow their agent’s advice. If you currently have or are soon to put your property on the market, and you have a good price on your property, just be patient; don’t be quick to reduce the price. Your property will sell, eventually; it's just not a “quick-sell” market like we have enjoyed in recent years. However, we are still seeing full price and near-full price offers being submitted, and even seeing some multiple offers here and there.
Let's talk about your real estate situation.
www.mmgproperties.com
The local and national media are "blowing the bubble" out of proportion. Listen to the experts and read the statistics as reported by NAR (National Association of Realtors) and CAR (California Association of Realtors). The reality is that the market is balancing out, normalizing, flattening a bit, but experts are still predicting a continued appreciation (at least 10% if not more, compared to 20% + enjoyed here in recent years). Of course, there are no guarantees and no one knows for sure.
As a Realtor in the East Bay Area of California, I am seeing some price reductions on properties that have been on the market over a month, but this is because it is a Buyers market now. Agents are trying to find a starting price point after coming off of years of "throwing any price out there and getting it." Good agents do their homework and put a realistic price on the house in the first place, thus eliminating the need to broach the subject of price reduction with the Sellers. Since the Sellers ultimately call the shots,if they are properly educated on the current market (not the market 2 months ago or 6 months ago) then they are more apt to be realistic and follow their agent’s advice. If you currently have or are soon to put your property on the market, and you have a good price on your property, just be patient; don’t be quick to reduce the price. Your property will sell, eventually; it's just not a “quick-sell” market like we have enjoyed in recent years. However, we are still seeing full price and near-full price offers being submitted, and even seeing some multiple offers here and there.
Let's talk about your real estate situation.
www.mmgproperties.com
Saturday, May 30, 2009
Real Estate in the Bay May 2009
Did you know?
This week NAR announced that existing home sales rose in April with strong buyer activity, as expected, in the lower price ranges. Nationally, existing home sales increased 2.9% to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March, but were 3.5 percent below that 4.85 million-unit level in April 2008.While most of the sales are taking place in lower price ranges, we are seeing increased activity in the mid-priced markets. This is a domino effect; a turnaround begins with the lower price range homes and once that sector of the market is stabilized, we begin to see changes in the mid and upper price ranges. The upper end, while most recently seeing increased activity, still is considered a Buyer’s market. This seems to be fairly consistent in major Metros on both coasts. Across most of our local MLS’s, there is approximately an average of 14+ month’s supply of homes over $2 million. This is about twice the inventory for the same period last year. Just the opposite has occurred in the <$800k market. Estimating the average month’s supply of homes across several MLS’s in this price range, we are seeing about 3 months or less – which is half of what we had this time last year – and is considered to be a Seller’s market. If you look at the same months where inventory has shrunk in the entry level – you’ll see stabilizing prices, and in some areas, increasing home values. And of course the higher end has seen declining median price as inventory has been building. This appears to be the perfect opportunity for the move up Buyer – they have a fairly captive audience for selling, and are coming from a better position to negotiate on the buying side. It’s also important to note that investors reacted to concerns about the mounting size of our national debt this week. The yield on the 10 year T-bill increased mid-week as stocks took a hit, and interest rates for mortgages were affected by a ½ to full one percent increase. Since purchasing power decreases with a rise in interest rates, some Buyers will have an increased sense of urgency to get a signed contract on their new home.
You’ll find links to some interesting real estate stories from this week below:
Enjoy and let me know how I can help you with your real estate needs.
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/05/28/financial/f070602D30.DTL&hw=real+estate&sn=002&sc=842http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/05/28/financial/f110028D09.DTL&hw=real+estate&sn=003&sc=766http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/05/28/BUJT17S3B2.DTL&hw=real+estate&sn=008&sc=607http://sanjose.bizjournals.com/sanjose/stories/2009/05/25/daily47.html
This week NAR announced that existing home sales rose in April with strong buyer activity, as expected, in the lower price ranges. Nationally, existing home sales increased 2.9% to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March, but were 3.5 percent below that 4.85 million-unit level in April 2008.While most of the sales are taking place in lower price ranges, we are seeing increased activity in the mid-priced markets. This is a domino effect; a turnaround begins with the lower price range homes and once that sector of the market is stabilized, we begin to see changes in the mid and upper price ranges. The upper end, while most recently seeing increased activity, still is considered a Buyer’s market. This seems to be fairly consistent in major Metros on both coasts. Across most of our local MLS’s, there is approximately an average of 14+ month’s supply of homes over $2 million. This is about twice the inventory for the same period last year. Just the opposite has occurred in the <$800k market. Estimating the average month’s supply of homes across several MLS’s in this price range, we are seeing about 3 months or less – which is half of what we had this time last year – and is considered to be a Seller’s market. If you look at the same months where inventory has shrunk in the entry level – you’ll see stabilizing prices, and in some areas, increasing home values. And of course the higher end has seen declining median price as inventory has been building. This appears to be the perfect opportunity for the move up Buyer – they have a fairly captive audience for selling, and are coming from a better position to negotiate on the buying side. It’s also important to note that investors reacted to concerns about the mounting size of our national debt this week. The yield on the 10 year T-bill increased mid-week as stocks took a hit, and interest rates for mortgages were affected by a ½ to full one percent increase. Since purchasing power decreases with a rise in interest rates, some Buyers will have an increased sense of urgency to get a signed contract on their new home.
You’ll find links to some interesting real estate stories from this week below:
Enjoy and let me know how I can help you with your real estate needs.
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/05/28/financial/f070602D30.DTL&hw=real+estate&sn=002&sc=842http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/05/28/financial/f110028D09.DTL&hw=real+estate&sn=003&sc=766http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/05/28/BUJT17S3B2.DTL&hw=real+estate&sn=008&sc=607http://sanjose.bizjournals.com/sanjose/stories/2009/05/25/daily47.html
Tuesday, March 3, 2009
Tax Credits for CA Homebuyers
Hello All,
As you may have heard, significant improvements in the temporary First-Time Homebuyer Tax Credit were signed into law on February 17, 2009 as part of the American Recovery and Reinvestment Act of 2009 to provide a housing stimulus for first-time home purchases that occur between January 1 and December 1, 2009. This is even better news for first-time homebuyers than the tax credit announced in April 2008 because not only has the tax credit maximum increased from $7,500 to $8,000—but more significantly—it does not need to be repaid unless the individual re-sells the home within three years.
There are several notable points about this federal income tax credit that I have bulleted for your convenience so you can easily explain the highlights to potential first-time homebuyers. They are: Credit maximum was increased from $7,500 to $8,000. The credit is calculated as 10% of the purchase price. Example: If the purchase price is $70,000, the credit is $7,000. Removed the repayment requirement, provided the homebuyer does not resell the home for three years. Eligibility remains for first-time homebuyers only. In this case, a first-time homebuyer is defined as an individual who has not owned a primary home at any time during the three years prior to purchase, but who may have done so prior to that time. Although certain income limits do apply, the amount of the credit is the same for all taxpayers, married or single.
To be eligible for the full tax credit, the homebuyer can have an annual adjusted gross income of no more than $75,000 ($150,000 on a joint return). A homebuyer with an annual adjusted gross income above that level and up to $95,000 ($170,000 on a joint return) is eligible for a reduced tax credit. The tax credit can be claimed on one’s individual or joint tax return for the purchase of any single-family home between January 1, 2009 and December 1, 2009. It can be claimed on a 2008 tax return (to be filed by April 15, 2009), an amended 2008 tax return, or a 2009 tax return. Individuals should consult a professional tax advisor for exact tax calculations and timing.
Call me today and let's talk about your real estate needs.
Monica Manocha Re, CMRS, CMNP
408 399 1495
www.mmgproperties.com
As you may have heard, significant improvements in the temporary First-Time Homebuyer Tax Credit were signed into law on February 17, 2009 as part of the American Recovery and Reinvestment Act of 2009 to provide a housing stimulus for first-time home purchases that occur between January 1 and December 1, 2009. This is even better news for first-time homebuyers than the tax credit announced in April 2008 because not only has the tax credit maximum increased from $7,500 to $8,000—but more significantly—it does not need to be repaid unless the individual re-sells the home within three years.
There are several notable points about this federal income tax credit that I have bulleted for your convenience so you can easily explain the highlights to potential first-time homebuyers. They are: Credit maximum was increased from $7,500 to $8,000. The credit is calculated as 10% of the purchase price. Example: If the purchase price is $70,000, the credit is $7,000. Removed the repayment requirement, provided the homebuyer does not resell the home for three years. Eligibility remains for first-time homebuyers only. In this case, a first-time homebuyer is defined as an individual who has not owned a primary home at any time during the three years prior to purchase, but who may have done so prior to that time. Although certain income limits do apply, the amount of the credit is the same for all taxpayers, married or single.
To be eligible for the full tax credit, the homebuyer can have an annual adjusted gross income of no more than $75,000 ($150,000 on a joint return). A homebuyer with an annual adjusted gross income above that level and up to $95,000 ($170,000 on a joint return) is eligible for a reduced tax credit. The tax credit can be claimed on one’s individual or joint tax return for the purchase of any single-family home between January 1, 2009 and December 1, 2009. It can be claimed on a 2008 tax return (to be filed by April 15, 2009), an amended 2008 tax return, or a 2009 tax return. Individuals should consult a professional tax advisor for exact tax calculations and timing.
Call me today and let's talk about your real estate needs.
Monica Manocha Re, CMRS, CMNP
408 399 1495
www.mmgproperties.com
Friday, February 20, 2009
New confidence with the real estate maket?
New Legislative Action…May We Finally Restore Consumer Confidence
It was a week full of stories and reports, both from the cynics and proponents of the American Recovery and Reinvestment Act of 2009. The $780 billion package was signed into law on February 17 and truly is the largest, most unprecedented recovery act in history.The provisions of the bill were changing even up until hours before the House and Senate voted on the bill, but the final provisions were recently posted to NAR’s website. Click here to access the details and learn more about the housing elements that were included: http://www.realtor.org/government_affairs/gapublic/american_recovery_reinvestment_act_home?lid=ronav0019Also announced this week was Obama’s $75 billion foreclosure prevention plan. The multipronged plan calls for modifying loans for borrowers both at risk or already in default and for allowing those with little or no home equity to refinance into more affordable loans through interest-rate reductions.Click here to read the details of the prevention plan: http://www.realtor.org/RMODaily.nsf/pages/News2009021901Obama’s administration said Wednesday that this prevention plan will help up to nine million people avoid foreclosure, by providing government funds to provide incentives to borrowers, loan servicers and mortgage investors to modify loans to affordable monthly payments.I know many are wondering if this new program will help them. Official guidelines of the plan won’t be unveiled until March 4, at which time we will focus our March Reality Check on the details of the plan and how consumers may take advantage of it. In the meantime, I did find this article on CNN.com which may help in educating yourself: http://money.cnn.com/2009/02/18/real_estate/Obama_foreclosure_plan/index.htm?postversion=2009021911I realize this is a highly debatable topic right now but what is not debatable is the fact that in order to fix this housing crisis, we must stop foreclosures. Just take a look at this week’s DataQuick release which showcased a further dip in prices due to distressed home sales: http://www.dqnews.com/News/California/Bay-Area/RRBay090219.aspx. Real estate is 20% of the gross domestic product in this country. The only way to fix 1/5 of this country’s GDP is to stop falling home prices and the only way we will do this is to stop people from loosing their homes. This prevention program should help millions of people stay in their home and will hopefully get our country back on track.The fact is, when consumers feel safe in their homes, feel safe in making their payments and once again feel confident that they will continue to have a roof over their heads, they will begin to put their money back in the economy. They’ll begin to make home improvements. They’ll begin to feel more confident in their future and that consumer confidence will begin to trickle into all areas of our economy. From home improvements to car purchases to vacations—and the jobs and associated spending that these create. What we know is, when consumers feel confident, they spend.Now I realize for many that statement conjures up far too many negative emotions from the recent past—people who are living beyond their means simply because they think their house is going to appreciate. Fortunately this plan and that of the American Recovery and Reinvestment Act of 2009 provide stipulations that we hope will stop history from repeating itself. Couple that with the fact that lenders have become far more conservative in their lending practices, we should finally be on a level playing field that will safeguard against such an issue.Now, let’s take a look at this week in real estate:
East Bay—Berkeley reports that there continues to be lots of buyers out there are some are writing offers. Some are still trying to feel out the stimulus bill, to see if there are enough perks in it for them, to assuage their fears of further price reductions. Consumer confidence is a big issue. If buyer’s jobs are secure, they will write offers. If they fear layoffs, they are hesitating to write. Some are waiting for the magical 4% loans. They will probably be waiting a long time for that product—if it ever happens. Danville shares that more than half of this week’s new sales were neither REO nor short sales. It appears that more sellers are getting realistic about sales prices. The Livermore office reports it had two walk-ins over the weekend and the majority of our new pending sales are short sales. The low end market is where the action is happening. One of the new pendings was at $750,000 while the remaining six pendings were $385,000 and below. Walnut Creek reports inventory is very low. We have fewer REOs coming on the market. Sales seem to be consistent.
Monterey County—Activity seems to be improving somewhat. We are seeing more floor calls. We have a lot of offers being written and we had a high number of new escrows with 18 last week.
North Bay—Greenbrae shares that no matter what or where you price a home, buyers want a deal so we are telling our sellers to expect some bargaining and not to be surprised with low ball offers. We saw sporadic attendance over the rainy three day weekend at open houses. Some did quite well while others didn’t with no real pattern. Southern Marin shares that even on the holiday weekend, we saw some good activity. One Agent in our office represented a buyer in a multiple offer situation on a home in Fairfax in the $900,000 range. Listings in the A+ neighborhoods are getting offers immediately as evidenced by a $1.4 million in Sycamore Park. Open houses got some buyers kicking tires, even in the pouring rain. Petaluma shares that inventory in Rohnert Park is dwindling. New inventory is coming on slow. In Rohnert Park, one REO property listed for $219,000 had 25 offers. In East Petaluma, in the $325,000 to $400,000 range, multiple offers are the rule rather than the exception. We are seeing some Westside Petaluma properties in the $475,000 to $575,000 range move very quickly. Only four properties on tour this week for broker’s tour in Petaluma. Sebastopol reports it is seeing multiple offers on short sales and REOs. We saw less activity at open homes over the weekend, probably due to weather. We had two accepted offers on properties in the $600s, after they reduced it from the $700s.
Peninsula—Burlingame shares that we saw an increase in sales and offers being written this week. Hopefully this is an indication of changes in buyer thinking and confidence. Our office prevailed in a five offer multiple in San Mateo which sold over asking. The Menlo Park El Camino office shares that we had slow sales but buyers migrate to the “discounted” properties; hence 50% of our sales were multiple offers. Open houses are robust, however, most buyers are still waiting for a sign that their investment will not evaporate in the coming months. The office also notes that 70% of our inventory is still overpriced. Sellers are slow to come to the reality that no amount of marketing on any property will prop up prices above fundamentally justified levels. Palo Alto reports a relatively slow week. Activity at open houses varies from just a few folks to a couple dozen groups. Activity has been good, but mostly lower end and foreclosures in outlying areas. San Mateo shares that active listings are up13% over 2008. Pending sales are down only 2% from 2008. Solds are down about 29%. New inventory was very light today, putting emphasis on the good properties. Woodside reports that for the first time in all recorded months, there were 0 closed sales in the town of Woodside and Atherton and only one in Portola Valley per the MLS for the month of January. Sales in these towns are generally based on desire not need. The declining prices of the unsold inventory tell the tale—that and the number of cancelled or withdrawn listings. So far this month, we’ve had one sale in Atherton (28% off list price), one sale in Woodside (22% of list price) and one sale in Portola Valley (20% off list price).
San Francisco—Lakeside reports that the weekend traffic was slow because of the rain and the fact that a lot of the homes on the market have been out there awhile. By Wednesday, three Agents in the office were in contract. The Market Street office shares open house attendance was all over the map. It went from one person coming through to 30 people going through a TIC on Steiner during the height of the rain. In the last couple of days, Agent’s offers are being ratified as buyers and sellers are becoming more realistic about this market. Lombard shares that there was more activity this past week. Weather reduced open traffic. There were still lots of fence sitters, but we saw good value on a condo and a serious price reduction on an apartment building brought multiple offers. Strong down payments are becoming the norm.
Santa Cruz County—The market slowed down in February as compared with November, December and January. Open house activity continues to be fairly good and well attended depending on area and price of the home. The REO properties especially in south county seem to be slowing down in terms of number of units although the new properties continue to pull multiple offers. The under $300,000 mark, first time buyers or investors with cash are buying up the properties.
Silicon Valley—The Cupertino DeAnza office reports that we are getting some very nice listings. We hope this will translate into sales. The Los Altos First Street office notes that buyers are coming to open houses and openly commenting that they are waiting and trying to “time the market” for the upswing. At least they are generally feeling that we will have an upswing soon. Our San Jose Almaden office reports 40 groups through an REO open house that was trashed with no power and no plumbing. An offer was written by the Agent and accepted. To give you an idea, currently 70% of the Blossom Valley market is distressed sales. We are seeing 20% in Almaden and 25% in Cambrian. Almaden is the third slowest market (15% pending) behind Saratoga and Los Gatos in number of sales. The low end still appears to be the driving force right now. The San Jose Will Glen office reports that things have slowed up a bit. Again, open houses are busy and the floor calls keep coming in. Several Agents are working with buyers.
South County—Our Morgan Hill office reports that it seems that this week’s news—as it relates to real estate—has had a positive effect on potential buyers. The fact that the President has signed the stimulus bill coupled with the recent foreclosure prevention plan, has given a psychological boost to buyers, sellers and Agents. In South County, prices continue their downward spiral—but to the benefit of buyers who are seeing try bargains. Agents are reporting great attendance at open houses with buyers showing genuine interest. “Lookie Loos” and “Bottom Feeders” are out—serious potential buyers are in!
Of course time will only tell if all of this legislative action will work and we’ll only know if it does when we are able to reflect on it a year, two or even three down the road. But the fact is we’ve been in a holding pattern for far too long. And our economy, country and people have struggled and lost far too much because of it. The recent passage of these two very important housing initiatives—which include (among other things) the $8,000 first time home buyer credit and the increase in conforming loan limits—should finally put us on the road to recovery.
Until next week,
Have a great one,
Monica
It was a week full of stories and reports, both from the cynics and proponents of the American Recovery and Reinvestment Act of 2009. The $780 billion package was signed into law on February 17 and truly is the largest, most unprecedented recovery act in history.The provisions of the bill were changing even up until hours before the House and Senate voted on the bill, but the final provisions were recently posted to NAR’s website. Click here to access the details and learn more about the housing elements that were included: http://www.realtor.org/government_affairs/gapublic/american_recovery_reinvestment_act_home?lid=ronav0019Also announced this week was Obama’s $75 billion foreclosure prevention plan. The multipronged plan calls for modifying loans for borrowers both at risk or already in default and for allowing those with little or no home equity to refinance into more affordable loans through interest-rate reductions.Click here to read the details of the prevention plan: http://www.realtor.org/RMODaily.nsf/pages/News2009021901Obama’s administration said Wednesday that this prevention plan will help up to nine million people avoid foreclosure, by providing government funds to provide incentives to borrowers, loan servicers and mortgage investors to modify loans to affordable monthly payments.I know many are wondering if this new program will help them. Official guidelines of the plan won’t be unveiled until March 4, at which time we will focus our March Reality Check on the details of the plan and how consumers may take advantage of it. In the meantime, I did find this article on CNN.com which may help in educating yourself: http://money.cnn.com/2009/02/18/real_estate/Obama_foreclosure_plan/index.htm?postversion=2009021911I realize this is a highly debatable topic right now but what is not debatable is the fact that in order to fix this housing crisis, we must stop foreclosures. Just take a look at this week’s DataQuick release which showcased a further dip in prices due to distressed home sales: http://www.dqnews.com/News/California/Bay-Area/RRBay090219.aspx. Real estate is 20% of the gross domestic product in this country. The only way to fix 1/5 of this country’s GDP is to stop falling home prices and the only way we will do this is to stop people from loosing their homes. This prevention program should help millions of people stay in their home and will hopefully get our country back on track.The fact is, when consumers feel safe in their homes, feel safe in making their payments and once again feel confident that they will continue to have a roof over their heads, they will begin to put their money back in the economy. They’ll begin to make home improvements. They’ll begin to feel more confident in their future and that consumer confidence will begin to trickle into all areas of our economy. From home improvements to car purchases to vacations—and the jobs and associated spending that these create. What we know is, when consumers feel confident, they spend.Now I realize for many that statement conjures up far too many negative emotions from the recent past—people who are living beyond their means simply because they think their house is going to appreciate. Fortunately this plan and that of the American Recovery and Reinvestment Act of 2009 provide stipulations that we hope will stop history from repeating itself. Couple that with the fact that lenders have become far more conservative in their lending practices, we should finally be on a level playing field that will safeguard against such an issue.Now, let’s take a look at this week in real estate:
East Bay—Berkeley reports that there continues to be lots of buyers out there are some are writing offers. Some are still trying to feel out the stimulus bill, to see if there are enough perks in it for them, to assuage their fears of further price reductions. Consumer confidence is a big issue. If buyer’s jobs are secure, they will write offers. If they fear layoffs, they are hesitating to write. Some are waiting for the magical 4% loans. They will probably be waiting a long time for that product—if it ever happens. Danville shares that more than half of this week’s new sales were neither REO nor short sales. It appears that more sellers are getting realistic about sales prices. The Livermore office reports it had two walk-ins over the weekend and the majority of our new pending sales are short sales. The low end market is where the action is happening. One of the new pendings was at $750,000 while the remaining six pendings were $385,000 and below. Walnut Creek reports inventory is very low. We have fewer REOs coming on the market. Sales seem to be consistent.
Monterey County—Activity seems to be improving somewhat. We are seeing more floor calls. We have a lot of offers being written and we had a high number of new escrows with 18 last week.
North Bay—Greenbrae shares that no matter what or where you price a home, buyers want a deal so we are telling our sellers to expect some bargaining and not to be surprised with low ball offers. We saw sporadic attendance over the rainy three day weekend at open houses. Some did quite well while others didn’t with no real pattern. Southern Marin shares that even on the holiday weekend, we saw some good activity. One Agent in our office represented a buyer in a multiple offer situation on a home in Fairfax in the $900,000 range. Listings in the A+ neighborhoods are getting offers immediately as evidenced by a $1.4 million in Sycamore Park. Open houses got some buyers kicking tires, even in the pouring rain. Petaluma shares that inventory in Rohnert Park is dwindling. New inventory is coming on slow. In Rohnert Park, one REO property listed for $219,000 had 25 offers. In East Petaluma, in the $325,000 to $400,000 range, multiple offers are the rule rather than the exception. We are seeing some Westside Petaluma properties in the $475,000 to $575,000 range move very quickly. Only four properties on tour this week for broker’s tour in Petaluma. Sebastopol reports it is seeing multiple offers on short sales and REOs. We saw less activity at open homes over the weekend, probably due to weather. We had two accepted offers on properties in the $600s, after they reduced it from the $700s.
Peninsula—Burlingame shares that we saw an increase in sales and offers being written this week. Hopefully this is an indication of changes in buyer thinking and confidence. Our office prevailed in a five offer multiple in San Mateo which sold over asking. The Menlo Park El Camino office shares that we had slow sales but buyers migrate to the “discounted” properties; hence 50% of our sales were multiple offers. Open houses are robust, however, most buyers are still waiting for a sign that their investment will not evaporate in the coming months. The office also notes that 70% of our inventory is still overpriced. Sellers are slow to come to the reality that no amount of marketing on any property will prop up prices above fundamentally justified levels. Palo Alto reports a relatively slow week. Activity at open houses varies from just a few folks to a couple dozen groups. Activity has been good, but mostly lower end and foreclosures in outlying areas. San Mateo shares that active listings are up13% over 2008. Pending sales are down only 2% from 2008. Solds are down about 29%. New inventory was very light today, putting emphasis on the good properties. Woodside reports that for the first time in all recorded months, there were 0 closed sales in the town of Woodside and Atherton and only one in Portola Valley per the MLS for the month of January. Sales in these towns are generally based on desire not need. The declining prices of the unsold inventory tell the tale—that and the number of cancelled or withdrawn listings. So far this month, we’ve had one sale in Atherton (28% off list price), one sale in Woodside (22% of list price) and one sale in Portola Valley (20% off list price).
San Francisco—Lakeside reports that the weekend traffic was slow because of the rain and the fact that a lot of the homes on the market have been out there awhile. By Wednesday, three Agents in the office were in contract. The Market Street office shares open house attendance was all over the map. It went from one person coming through to 30 people going through a TIC on Steiner during the height of the rain. In the last couple of days, Agent’s offers are being ratified as buyers and sellers are becoming more realistic about this market. Lombard shares that there was more activity this past week. Weather reduced open traffic. There were still lots of fence sitters, but we saw good value on a condo and a serious price reduction on an apartment building brought multiple offers. Strong down payments are becoming the norm.
Santa Cruz County—The market slowed down in February as compared with November, December and January. Open house activity continues to be fairly good and well attended depending on area and price of the home. The REO properties especially in south county seem to be slowing down in terms of number of units although the new properties continue to pull multiple offers. The under $300,000 mark, first time buyers or investors with cash are buying up the properties.
Silicon Valley—The Cupertino DeAnza office reports that we are getting some very nice listings. We hope this will translate into sales. The Los Altos First Street office notes that buyers are coming to open houses and openly commenting that they are waiting and trying to “time the market” for the upswing. At least they are generally feeling that we will have an upswing soon. Our San Jose Almaden office reports 40 groups through an REO open house that was trashed with no power and no plumbing. An offer was written by the Agent and accepted. To give you an idea, currently 70% of the Blossom Valley market is distressed sales. We are seeing 20% in Almaden and 25% in Cambrian. Almaden is the third slowest market (15% pending) behind Saratoga and Los Gatos in number of sales. The low end still appears to be the driving force right now. The San Jose Will Glen office reports that things have slowed up a bit. Again, open houses are busy and the floor calls keep coming in. Several Agents are working with buyers.
South County—Our Morgan Hill office reports that it seems that this week’s news—as it relates to real estate—has had a positive effect on potential buyers. The fact that the President has signed the stimulus bill coupled with the recent foreclosure prevention plan, has given a psychological boost to buyers, sellers and Agents. In South County, prices continue their downward spiral—but to the benefit of buyers who are seeing try bargains. Agents are reporting great attendance at open houses with buyers showing genuine interest. “Lookie Loos” and “Bottom Feeders” are out—serious potential buyers are in!
Of course time will only tell if all of this legislative action will work and we’ll only know if it does when we are able to reflect on it a year, two or even three down the road. But the fact is we’ve been in a holding pattern for far too long. And our economy, country and people have struggled and lost far too much because of it. The recent passage of these two very important housing initiatives—which include (among other things) the $8,000 first time home buyer credit and the increase in conforming loan limits—should finally put us on the road to recovery.
Until next week,
Have a great one,
Monica
Tuesday, February 17, 2009
It Passed... Now What?
A compromise on the Economic Stimulus Package has been reached. The new price tag: $787 billion. That’s below both the $820 billion House-passed version and the $838 billion Senate-passed version. Just like with anything in life, the final package is all about compromise. Real estate advocates from NAR and Realogy President Richard Smith lobbied well on our behalf but in the end only a portion of the requests we had of lawmakers were made part of the final Economic Stimulus Package.I am encouraged that lawmakers have now reached an agreement and we can finally move forward with some direct action.The goal of the highly controversial Economic Stimulus Package is to create or save some 3.5 million jobs while helping to rebuild our nation’s economy which has been in a recession since December 2007. Although, at the writing of this piece, the details of the legislation had not been finalized, we do anticipate a number of important housing provisions, including (as reported by NAR):
“Homebuyer Tax Credit – a $8000 tax credit that will be available for qualified purchase of a principal residence by a first time homebuyer between January 1, 2009 and December 1, 2009. The credit does not require repayment. Individuals who purchase in 2009 using financing assistance from state and local mortgage bonds will be permitted to use the credit, as well. Click here for a chart with details on the first-time home buyer tax credit: http://www.realtor.org/wps/wcm/connect/b32db1004d05f6338052c5fd73e5610f/government_affairs_tax_credit_chart_021308.pdf?MOD=AJPERES&CACHEID=b32db1004d05f6338052c5fd73e5610f
FHA, Fannie and Freddie Loan Limits – Revised loan limits for FHA, Freddie Mac, and Fannie Mae. Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the HUD Secretary.
Foreclosure Mitigation & Neighborhood Stabilization – Funding for states and local communities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized.”
In addition to these new elements, NAR continues to work with the Department of Treasury to implement a mortgage buy-down program. The details on that will surface over the next several weeks.To view all of the housing provisions, click here: http://www.realtor.org/government_affairs/gapublic/uae_hr1_additional_provisionsSo what’s next? President Obama is pushing to get quick approval of the emergency package so he can sign it into law before the end of this three-day holiday weekend.Once it is signed into action, Washington is eager to get the funds into the local state governments and ultimately the local economies so they begin to directly affect Main Street. Consider reading this article from CNN with more details on the package itself: http://money.cnn.com/2009/02/13/news/economy/stimulus_individuals/index.htm?postversion=2009021308
There’s no question, it will take several weeks—if not months—before we begin to see some patterns or trends and for this package to have a full impact on our economy. But I am gratified that the government recognized the importance of passing the Economic Stimulus Package. 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 right here at home. I believe the legislation will help to stabilize the housing market, at a time when our country needs it most.With this news in tow, let’s take a look at this week in real estate:
East Bay—Berkeley reports that buyers are definitely out there looking. Our floor time and walk-in traffic have been great. Two of our Berkeley Previews properties just went pending another listing in the $800s also went pending. Castro Valley reports that well priced, well-maintained properties are being snatched up in our local market due to decreases in inventory. We had a well-priced Castro Valley home that saw multiple offers that went pending (over asking, within five days of listing). Another clean, well-priced home in the San Lorenzo/Hayward area went back on the market and had three offers within two days. Having said that, prices continue to dip. Castro Valley pricing remains super competitive, with entry level properties hovering between $350,000 and $400,000. Danville reports that the upper end is showing signs of life. Four of our last eight sales were above $800,000 and were not REOs. Open houses also continue to be well attended in this market. Tri Valley Update: Since the first week in January 2009, Livermore active listings have decreased about 6% and total pending sales are up over 8%. Pleasanton active listings have increased 23% and total pending sales are up 20%. The active listings in Dublin have remained steady and the total pending sales are up almost 10%. Walnut Creek reports good open house attendance. First time buyers and investors are out there and actually making offers on listings. The entry level priced homes are selling.
Monterey County—The activity level seems to be picking up somewhat. Agents are busy writing offers though getting a meeting of the minds between buyers and sellers is taking more counters and more time.
North Bay—Our Greenbrae office reports that a home in Fairfax listed at $1.7 million had more than 183 people through its Saturday and Sunday open houses this passed week. One REO property came on the market at 8 p.m. and had two offers by noon the next day. Increased traffic at Agent open homes this past Sunday. One Greenbrae home listed at $1 million was in contract before the Sunday open – less than two days after listing. Southern Marin notes that while sales are still soft, open houses were heavily attended on Sunday with many seemingly real buyers. A $2.5 million property in Mountain View had almost 20 parties and that was the third open house. The Agent felt there were a handful of qualified buyers. We are seeing more listing that are starting to come on and slowly but sure the market is picking up. Petaluma reports a flurry of open house activity with 30-40 groups in numerous properties. Buyers are our in full force and Agents are bringing their buyers to open houses. We are continually seeing multiple offers in most price ranges.
Peninsula—Half Moon Bay notes that Agents are more enthused this week as the phones are ringing and floor activity is on the rise. Purchase contracts are being written but are too low at this time for sellers to understand the offer is probably market value. Menlo Park Santa Cruz reports that buyers are circling but are slow to react. Sellers are listening to the advice of their Agents and are starting to price their homes competitively to get them sold. We did have a sale this week in Woodside that was over $3 million which is helping to breathe some life into the upper end. Palo Alto is noting an interesting trend. Activity at open houses varies from open home to open home and from price point to price point. We see 100 folks show up at a townhouse in Mountain View and maybe just two or three at a condo in Palo Alto. Our Woodside office noted one $3.5 million listing had three offers. Two others over a million also had multiple offers. The lesson: buyers will buy a property that is at the right price—ones that are “discounted” to today’s market prices.
San Francisco—Lombard notes a lot of fence sitters, price reductions and low offers. But the well-presented, well-priced homes are getting the contracts. Sales over $1.5 million are still rare. New construction is taking the biggest hit. The Market Street office notes that open house attendance was brisk. Buyers have stepped back a bit waiting for the results of the stimulus package and how it will affect them.
Santa Cruz County—No information reported this week.
Silicon Valley—It was a slow week. Correction. A really slow week. Our Cupertino De Anza office write, “The only thing that matters right now is a cheap price.” Well of course that is debatable and is certainly dependent on the market—and the house for that matter—but what I would agree with is that buyers are looking for value right now. They are looking for value and only act when they see it. Los Gatos reported a number of short sales which is why our short sale seminars this week were so appreciated. San Jose Main is telling a bit of a different story noting that buyer activity is increasing. Open house traffic is up dramatically from the past weekend, especially with homes priced at $300,000 to $500,000. We are seeing increased sales activity and interest this past week, according to SJ Main. San Jose Willow Glen reports that open houses have quite a bit of traffic and floor calls are picking up slightly. Several Agents are working with buyers at this time so our hope is that it is just a matter of time until this interest turns into closed contracts.
South County—No information reported this week.
What I’d like to leave you with this week is this: it’s time to get in a position of optimism. We are in a great position for a turnaround. But we also must understand that this isn’t going to be an easy road. The road we took to get here wasn’t easy and the road ahead may be a challenge. But the up side is that we are on the road to recovery. Our market has been in neutral for some time and now it is time to put it in drive. The Economic Stimulus Package. The release of the second half of the TARP funds. These are all things that can and should help. Now it is up to our economy to do the rest. Let’s watch as the details unfold over the next few weeks and we’ll wait to see whether the $787 billion in aid is our nation’s answer to prosperity. All we can do is hope and remain optimistic.
Until next week,
Monica
408 399 1495
www.mmgproperties.com
Wednesday, February 11, 2009
Short Sales are the Talk of the Bay Area Now....
Short Sales Are The Talk of the Bay Area!!!
Do you know what the causes of these short sales are?
1. Over zealous construction by all builders.
2. Stated income loans.
3. Drained equity.
4. Lender fraud.
5. 100% or more financing.
6. Negative amortization loans.
7. Declining property values.
8. Inflated appraisals.
9. Rising mortgage paymemts & no mortgage insurance.
10. Seller forced to sell due to personal circumstances. (Job loss & or spouse’s death etc)
Call or email us today and let us help you understand the situation more.
The Malcolm & Manocha Group Re, CMRS,CMNP
Direct: 408 399 1495
www.mmgproperties.com
monica.manocha@cbnorcal.com
Do you know what the causes of these short sales are?
1. Over zealous construction by all builders.
2. Stated income loans.
3. Drained equity.
4. Lender fraud.
5. 100% or more financing.
6. Negative amortization loans.
7. Declining property values.
8. Inflated appraisals.
9. Rising mortgage paymemts & no mortgage insurance.
10. Seller forced to sell due to personal circumstances. (Job loss & or spouse’s death etc)
Call or email us today and let us help you understand the situation more.
The Malcolm & Manocha Group Re, CMRS,CMNP
Direct: 408 399 1495
www.mmgproperties.com
monica.manocha@cbnorcal.com
Friday, January 23, 2009
Real Estate in the Bay After the 44th...
It’s Time to Pick Ourselves Up and Dust Ourselves Off…Yes We Can!
Regardless of your political persuasion, Tuesday’s inauguration of the 44th President of the United States was one for the history books and I think we all agree that we hope that the change President Obama has promised will come sooner rather than later.
In the words of our new President during his inaugural address, “Starting today, we must pick ourselves up, dust ourselves off and begin again the work of remaking America. For everywhere we look, there is work to be done. The state of the economy calls for action, bold and swift, and we will act—not only to create new jobs, but to lay a new foundation for growth.”
There’s no question, Obama has his work cut out for him. This week CNN reported, “The scope and intensity of problems facing President Obama are similar only to those that Franklin D. Roosevelt faced in 1933.”
Obama is expected to hit the ground running. History shows that the first year of a President’s term is most critical. At some point, he will own the problems he has inherited and so time is of the essence; he knows he must take immediate action.
In the short run, Obama has pledged to work with Congress to implement aggressive policies—including as I referenced last week, making better use of the TARP funds—to prevent foreclosures and strengthen existing home sales. With the second half of the TARP funds now available to him (totaling some $350 billion) we should see the beginning use of those dollars sometime within his first 100 days in office. Obama has promised to devote $50 billion to $100 billion to a new foreclosure prevention program, leaving him between $250 billion and $300 billion of TARP money to address the continuing credit crisis.
As Obama was being sworn in, the world as we know it continued. One of the current issues most affecting our market is the drop in mortgage loan limits for conventional financing as of the end of 2008. This is dramatically hurting home sales and trade-up activity in higher price ranges. According to NAR, “The latest existing home sales data shows transactions under $400,000 are 3 percent below a year ago. However, sales of homes priced at $750,000 or more have declined a whopping 47 percent.” Buyers who need jumbo mortgages must pay interest rates that are nearly 2 percentage points higher than conventional financing; as a result, the high-end market is very slow and buyers in higher price ranges are at a severe disadvantage.
Currently NAR is pushing for the permanent increase of mortgage loan limits to that $729,750 cap. According to a statement released this week by NAR, “To illustrate in dollar terms if mortgage limits are permanently raised to $729,750…the mortgage payment on such a loan would drop by $942 per month by lowering interest rates 2 percentage points. Over the life of a 30-year loan, the homeowner would save $338,000.”
Especially here in our market, we need the increased loan limits so people in all prices are able to purchase. I am a firm believer that every segment of the housing market needs a turnaround to spark an overall housing recovery.
With this information in tow, let’s take a look at this week in real estate, including Wednesday’s release of DataQuick figures: http://www.dqnews.com/News/California/Bay-Area/RRBay090121.aspx
East Bay—The Castro Valley office reports that it has seen the low end picking up ($100-250K) driven by lots of FHA loans for first time home buyers, low interest rates and great prices. Prices in Castro Valley continue to dip, making it a hot market due to the desirability of the area. In fact, there is a single family residence currently listed in Castro Valley for $199,000, which is an unseen precedent for this area. Our Danville office reports that the market is slow but steady. Our agents are reporting good attendance at open houses and sellers are getting more realistic which are two signs of good things to come. Our Fremont office notes that we have had a slow down in the REO market that reflects in the decreasing listings and sales in our office. The REO market has slowed due to the temporary freeze that some loan agencies incurred during the holidays. Our Orinda office notes that Agents are talking about working with many buyers and how excited they are about what is about to happen in the real estate market. Finally, our Walnut Creek office shares that activity has increased. Open houses have been well attended and buyers are finally starting to take action. People who have been renting have stated they believe prices have finally hit bottom and they are ready to buy.
San Francisco—Our Lombard office notes that we’re seeing new listings and some December resurrected ones are coming on. Open house traffic is light though increasing. The hottest market in this office is the $400,000 to $700,000 range with REOs leading the way. One word of caution: buyers don’t get too complacent. One client waited for the third day to see a new listing on the market and by then the listing was already ratified and they had to compete with three back-up offers. Our Market Street office notes that Agents are signing up listings and getting good traffic at their open houses, they are just waiting for offers to be written. The Agents with qualified buyers that are looking at a property say that buyers are holding off sure that any day prices are going to soften or money may get a little cheaper. Our Noriega office notes that though we seen an active floor and LeadRouter requests, we are not seeing an uptick in sales.
Santa Cruz County—Listings seem to be coming on slow though the market continues to be driven by REOs. We do see multiple offers, though almost solely on REO properties.
Silicon Valley—Our San Jose Almaden office notes that condition and aggressive pricing yield sales even with conventional sellers. Almaden days of inventory is 288 days and Blossom Valley is at 105 days. But, we just sold a beautiful Almaden home in four days with aggressive pricing. Sellers consider this before you place your home on the market. Our San Jose Main office notes a series of increases in buyer activity, weekend traffic and listing inventory. There is good activity in the $400-700K range. Our Saratoga office notes that the luxury market remains slow and REOs are still the hottest area of the market.
South County—Our Gilroy office reports that we are starting to see the market pick up with buyers becoming more active now that the holidays are behind us and interest rates are better than ever. We are seeing great opportunities for the first time buyer and investors. Our Hollister office reports that we are seeing multiple offers on most REO listings. In other updates, REO listing inventory is decreasing, floor activity is on the rise and prices are decreasing. Our Morgan Hill office reports that South Valley homeowner’s are in mourning over their declining property values though buyers continue to rejoice over how affordable homes are becoming coupled with today’s low interest rates. Agents are delivering this message loud and clear: It’s time to buy and if you don’t have to sell, don’t. Sellers face fierce price competition from neighboring homes that are either short sales or REOs.
If nothing else, this week’s change in executive leadership of the United States of America changed—even if it was slightly—consumer confidence at a time when we need it most. During his acceptance speech in November, Obama repeated in a rhetorically symbolic gesture, “Yes, we can.” If it provides any solace in this time of challenge, I would agree with the words of our now President and add:
Yes, we can move past this challenging market.
Yes, we can rebuild our market to its once robust roots.
Yes, we can keep things in perspective and remember that we came from one of the hottest real estate markets of our time and today’s market is the economy moving back into equilibrium.
Yes, we can remember that with today’s low interest rates, motivated sellers and generous inventory, it’s a great time to buy!
Yes, we can remain united and be reminded that this too shall pass.
It’s just a matter of time. So let’s collectively pick ourselves up, dust ourselves off and move forward as our future is bright.
Regardless of your political persuasion, Tuesday’s inauguration of the 44th President of the United States was one for the history books and I think we all agree that we hope that the change President Obama has promised will come sooner rather than later.
In the words of our new President during his inaugural address, “Starting today, we must pick ourselves up, dust ourselves off and begin again the work of remaking America. For everywhere we look, there is work to be done. The state of the economy calls for action, bold and swift, and we will act—not only to create new jobs, but to lay a new foundation for growth.”
There’s no question, Obama has his work cut out for him. This week CNN reported, “The scope and intensity of problems facing President Obama are similar only to those that Franklin D. Roosevelt faced in 1933.”
Obama is expected to hit the ground running. History shows that the first year of a President’s term is most critical. At some point, he will own the problems he has inherited and so time is of the essence; he knows he must take immediate action.
In the short run, Obama has pledged to work with Congress to implement aggressive policies—including as I referenced last week, making better use of the TARP funds—to prevent foreclosures and strengthen existing home sales. With the second half of the TARP funds now available to him (totaling some $350 billion) we should see the beginning use of those dollars sometime within his first 100 days in office. Obama has promised to devote $50 billion to $100 billion to a new foreclosure prevention program, leaving him between $250 billion and $300 billion of TARP money to address the continuing credit crisis.
As Obama was being sworn in, the world as we know it continued. One of the current issues most affecting our market is the drop in mortgage loan limits for conventional financing as of the end of 2008. This is dramatically hurting home sales and trade-up activity in higher price ranges. According to NAR, “The latest existing home sales data shows transactions under $400,000 are 3 percent below a year ago. However, sales of homes priced at $750,000 or more have declined a whopping 47 percent.” Buyers who need jumbo mortgages must pay interest rates that are nearly 2 percentage points higher than conventional financing; as a result, the high-end market is very slow and buyers in higher price ranges are at a severe disadvantage.
Currently NAR is pushing for the permanent increase of mortgage loan limits to that $729,750 cap. According to a statement released this week by NAR, “To illustrate in dollar terms if mortgage limits are permanently raised to $729,750…the mortgage payment on such a loan would drop by $942 per month by lowering interest rates 2 percentage points. Over the life of a 30-year loan, the homeowner would save $338,000.”
Especially here in our market, we need the increased loan limits so people in all prices are able to purchase. I am a firm believer that every segment of the housing market needs a turnaround to spark an overall housing recovery.
With this information in tow, let’s take a look at this week in real estate, including Wednesday’s release of DataQuick figures: http://www.dqnews.com/News/California/Bay-Area/RRBay090121.aspx
East Bay—The Castro Valley office reports that it has seen the low end picking up ($100-250K) driven by lots of FHA loans for first time home buyers, low interest rates and great prices. Prices in Castro Valley continue to dip, making it a hot market due to the desirability of the area. In fact, there is a single family residence currently listed in Castro Valley for $199,000, which is an unseen precedent for this area. Our Danville office reports that the market is slow but steady. Our agents are reporting good attendance at open houses and sellers are getting more realistic which are two signs of good things to come. Our Fremont office notes that we have had a slow down in the REO market that reflects in the decreasing listings and sales in our office. The REO market has slowed due to the temporary freeze that some loan agencies incurred during the holidays. Our Orinda office notes that Agents are talking about working with many buyers and how excited they are about what is about to happen in the real estate market. Finally, our Walnut Creek office shares that activity has increased. Open houses have been well attended and buyers are finally starting to take action. People who have been renting have stated they believe prices have finally hit bottom and they are ready to buy.
San Francisco—Our Lombard office notes that we’re seeing new listings and some December resurrected ones are coming on. Open house traffic is light though increasing. The hottest market in this office is the $400,000 to $700,000 range with REOs leading the way. One word of caution: buyers don’t get too complacent. One client waited for the third day to see a new listing on the market and by then the listing was already ratified and they had to compete with three back-up offers. Our Market Street office notes that Agents are signing up listings and getting good traffic at their open houses, they are just waiting for offers to be written. The Agents with qualified buyers that are looking at a property say that buyers are holding off sure that any day prices are going to soften or money may get a little cheaper. Our Noriega office notes that though we seen an active floor and LeadRouter requests, we are not seeing an uptick in sales.
Santa Cruz County—Listings seem to be coming on slow though the market continues to be driven by REOs. We do see multiple offers, though almost solely on REO properties.
Silicon Valley—Our San Jose Almaden office notes that condition and aggressive pricing yield sales even with conventional sellers. Almaden days of inventory is 288 days and Blossom Valley is at 105 days. But, we just sold a beautiful Almaden home in four days with aggressive pricing. Sellers consider this before you place your home on the market. Our San Jose Main office notes a series of increases in buyer activity, weekend traffic and listing inventory. There is good activity in the $400-700K range. Our Saratoga office notes that the luxury market remains slow and REOs are still the hottest area of the market.
South County—Our Gilroy office reports that we are starting to see the market pick up with buyers becoming more active now that the holidays are behind us and interest rates are better than ever. We are seeing great opportunities for the first time buyer and investors. Our Hollister office reports that we are seeing multiple offers on most REO listings. In other updates, REO listing inventory is decreasing, floor activity is on the rise and prices are decreasing. Our Morgan Hill office reports that South Valley homeowner’s are in mourning over their declining property values though buyers continue to rejoice over how affordable homes are becoming coupled with today’s low interest rates. Agents are delivering this message loud and clear: It’s time to buy and if you don’t have to sell, don’t. Sellers face fierce price competition from neighboring homes that are either short sales or REOs.
If nothing else, this week’s change in executive leadership of the United States of America changed—even if it was slightly—consumer confidence at a time when we need it most. During his acceptance speech in November, Obama repeated in a rhetorically symbolic gesture, “Yes, we can.” If it provides any solace in this time of challenge, I would agree with the words of our now President and add:
Yes, we can move past this challenging market.
Yes, we can rebuild our market to its once robust roots.
Yes, we can keep things in perspective and remember that we came from one of the hottest real estate markets of our time and today’s market is the economy moving back into equilibrium.
Yes, we can remember that with today’s low interest rates, motivated sellers and generous inventory, it’s a great time to buy!
Yes, we can remain united and be reminded that this too shall pass.
It’s just a matter of time. So let’s collectively pick ourselves up, dust ourselves off and move forward as our future is bright.
Until next week,
Have a great one & please let me know how I can help you or someone you know with their real estate needs.
Monica Manocha Re, CMRS
408 399 1495
Friday, January 16, 2009
Real Estate in the Bay Area 2009
Hello all & Happy Friday,
In continued display that the President-elect will hit the ground running when he takes office in just four days, Obama met with Congress on Tuesday to ensure he’ll have more than a trillion dollars at his disposal within weeks of his inauguration to begin rebuilding our ailing economy. Just two days later (on Thursday), the President-elect secured access to the second half of the $700 billion financial rescue package after the Senate voted 52-42 against a measure that would have blocked the funds’ release—many members of the Senate felt the Bush administration wasted the first half and were concerned that the Obama administration may do the same.
The President-elect says he hopes to have the ability to tap into a portion of that money within days of becoming President. His plans with the money as well as a stimulus package he hopes to see lawmakers approve, shortly, include:
Creating more than three million jobs, many of them in construction and manufacturing
A focus on helping homeowners avoid foreclosures
Stimulate housing investment and help current homeowners
Provide needed liquidity to commercial mortgage markets to ensure that financing is available
Work more to help people get student loans and car loans
Make sure that the taxpayers’ money didn’t go to high salaries or bonuses for Wall Street executives
Requirement of continues reports on earning, repayments and lending practices from institutions that receive bailout funds
Obama’s economic aids assure that the incoming administration will be responsible with its spending of the Troubled Asset Relief Program (TARP) funds and pledged to commit some $50 billion to $100 billion to address foreclosures.
As we well know, one of the biggest challenges currently affecting our market is the difficulty of even the most qualified buyer to secure financing. The goal of TARP is to open the housing and financial system so buyers—especially those with good credit—are able to once again secure financing.
Several weeks ago in my Real Estate message I made reference to the fact that real estate was in probably one of the best positions—industry wise—for a correction. This is thanks to the fact that lawmakers realize that because housing makes up 20% of the GDP, our economy cannot be fixed without fixing the housing sector. With Obama’s recent outreach to Congress and the TARP funds now available, we’re starting to see the first in what I believe to be several outreach efforts to fix the hard hit housing industry.
Now don’t be fooled. This won’t happen overnight. We’ve got a long road ahead and depending on what forecast you are reading, some say we’ll start seeing a turnaround in mid-2009 and others say we may not see it until 2010, but the good news is that we are on track and our country is finally moving in the right direction.
Now, on that positive note, let’s take a look at this week in real estate:
San Francisco—Our Lakeside and Noriega offices agree that activity hasn’t picked up substantially since the holidays. Is it possible some San Franciscans are waiting until after Obama takes office to begin actively searching? On the flip side, our Market Street office reports that Agents are still remarking about the great traffic at their open houses over the weekend. They believe real buyers are showing up but they are just holding off on pulling the trigger. Our Van Ness office notes that we are seeing better activity in the last 10 days in all price ranges.
Santa Cruz County—January seems to be starting out slow in general. There were a few new sales for the month although we are closing quite a few from November to December. Open houses have been well attended the last two weeks. Our Agents in Santa Cruz are fairly optimistic about 2009.
Silicon Valley—According to our Cupertino Stevens Creek office, the first week of 2009 showed an increase in listings and sale pending transactions. It’s hard to know if this is the start of a trend or just coming off the cooler holiday months. This of course will be a market we’ll continue to watch over the days and weeks ahead. Our San Jose Almaden office notes that buyers are beginning to pick up and activity at open houses is improving. This market continues to be driven by REOs and short sales. Our San Jose Willow Glen office concurs noting that floor call volume has picked up as have our open house traffic.
South County—Our Hollister office is reporting that REO inventory is decreasing and short sale listings are on the rise. Our Morgan Hill office notes that open houses are well attended. There seems to be a lot of interest and potential buyers are realizing that there has never been a better time to buy.
Overall, we are seeing a variance in the market—depending on the region. There is still the public perception that the market is not good, but buyers and sellers alike that they should focus less on what the media is saying and more on their desire to purchase or sell their home. One important note to consider, especially, is that most media outlets are reporting on national and/or regional data and as we well know, real estate, like politics, is very local. Every community and neighborhood is different and relying on regional and/or national data—often which is outdated by at least six weeks—may be a big mistake especially as we grow closer to a real estate turnaround. Remember, now is a great time to buy—but that won’t last forever!
Let me know how I can be of help to you or your friends, family and co-workers regarding their real estate needs. I am always here for you!
Have a great weekend!
Monica
Monica Manocha Re, CMRS * http://www.monicamanocha.com/ * 408 399 1495
221 Los Gatos Saratoga Rd * Los Gatos * CA * 95030
Monica Manocha Re, CMRS
The Malcolm & Manocha Group
Direct: (408) 399-1495Fax: (408) 354-5991Email: monica.manocha@cbnorcal.comWebsite: http://www.mmgproperties.com
In continued display that the President-elect will hit the ground running when he takes office in just four days, Obama met with Congress on Tuesday to ensure he’ll have more than a trillion dollars at his disposal within weeks of his inauguration to begin rebuilding our ailing economy. Just two days later (on Thursday), the President-elect secured access to the second half of the $700 billion financial rescue package after the Senate voted 52-42 against a measure that would have blocked the funds’ release—many members of the Senate felt the Bush administration wasted the first half and were concerned that the Obama administration may do the same.
The President-elect says he hopes to have the ability to tap into a portion of that money within days of becoming President. His plans with the money as well as a stimulus package he hopes to see lawmakers approve, shortly, include:
Creating more than three million jobs, many of them in construction and manufacturing
A focus on helping homeowners avoid foreclosures
Stimulate housing investment and help current homeowners
Provide needed liquidity to commercial mortgage markets to ensure that financing is available
Work more to help people get student loans and car loans
Make sure that the taxpayers’ money didn’t go to high salaries or bonuses for Wall Street executives
Requirement of continues reports on earning, repayments and lending practices from institutions that receive bailout funds
Obama’s economic aids assure that the incoming administration will be responsible with its spending of the Troubled Asset Relief Program (TARP) funds and pledged to commit some $50 billion to $100 billion to address foreclosures.
As we well know, one of the biggest challenges currently affecting our market is the difficulty of even the most qualified buyer to secure financing. The goal of TARP is to open the housing and financial system so buyers—especially those with good credit—are able to once again secure financing.
Several weeks ago in my Real Estate message I made reference to the fact that real estate was in probably one of the best positions—industry wise—for a correction. This is thanks to the fact that lawmakers realize that because housing makes up 20% of the GDP, our economy cannot be fixed without fixing the housing sector. With Obama’s recent outreach to Congress and the TARP funds now available, we’re starting to see the first in what I believe to be several outreach efforts to fix the hard hit housing industry.
Now don’t be fooled. This won’t happen overnight. We’ve got a long road ahead and depending on what forecast you are reading, some say we’ll start seeing a turnaround in mid-2009 and others say we may not see it until 2010, but the good news is that we are on track and our country is finally moving in the right direction.
Now, on that positive note, let’s take a look at this week in real estate:
San Francisco—Our Lakeside and Noriega offices agree that activity hasn’t picked up substantially since the holidays. Is it possible some San Franciscans are waiting until after Obama takes office to begin actively searching? On the flip side, our Market Street office reports that Agents are still remarking about the great traffic at their open houses over the weekend. They believe real buyers are showing up but they are just holding off on pulling the trigger. Our Van Ness office notes that we are seeing better activity in the last 10 days in all price ranges.
Santa Cruz County—January seems to be starting out slow in general. There were a few new sales for the month although we are closing quite a few from November to December. Open houses have been well attended the last two weeks. Our Agents in Santa Cruz are fairly optimistic about 2009.
Silicon Valley—According to our Cupertino Stevens Creek office, the first week of 2009 showed an increase in listings and sale pending transactions. It’s hard to know if this is the start of a trend or just coming off the cooler holiday months. This of course will be a market we’ll continue to watch over the days and weeks ahead. Our San Jose Almaden office notes that buyers are beginning to pick up and activity at open houses is improving. This market continues to be driven by REOs and short sales. Our San Jose Willow Glen office concurs noting that floor call volume has picked up as have our open house traffic.
South County—Our Hollister office is reporting that REO inventory is decreasing and short sale listings are on the rise. Our Morgan Hill office notes that open houses are well attended. There seems to be a lot of interest and potential buyers are realizing that there has never been a better time to buy.
Overall, we are seeing a variance in the market—depending on the region. There is still the public perception that the market is not good, but buyers and sellers alike that they should focus less on what the media is saying and more on their desire to purchase or sell their home. One important note to consider, especially, is that most media outlets are reporting on national and/or regional data and as we well know, real estate, like politics, is very local. Every community and neighborhood is different and relying on regional and/or national data—often which is outdated by at least six weeks—may be a big mistake especially as we grow closer to a real estate turnaround. Remember, now is a great time to buy—but that won’t last forever!
Let me know how I can be of help to you or your friends, family and co-workers regarding their real estate needs. I am always here for you!
Have a great weekend!
Monica
Monica Manocha Re, CMRS * http://www.monicamanocha.com/ * 408 399 1495
221 Los Gatos Saratoga Rd * Los Gatos * CA * 95030
Monica Manocha Re, CMRS
The Malcolm & Manocha Group
Direct: (408) 399-1495Fax: (408) 354-5991Email: monica.manocha@cbnorcal.comWebsite: http://www.mmgproperties.com
Subscribe to:
Posts (Atom)
