Bay Area Real Estate Market

A very Happy New Year for Real Estate...

2012-01-24T11:23:00.000-08:00

Last year closed on several positive notes when it came to the housing market, and a number of recently released reports suggest we could be seeing the market stabilizing and even gaining some momentum as we begin the New Year.

Noted housing economist Liz Ann Sonders of Charles Schwab said in a recent report that “we’re seeing a light at the end of the housing tunnel.” The senior vice president and chief investment strategist for the brokerage firm pointed out that the pending-home-sales index surged more than 7% last month to its best level since April 2010.

“At that point, housing was artificially supported by the homebuyer tax credit,” she said in her new economic forecast. “The last time pending sales were at the current level without government support was June 2007.” Adding to the optimism, Sonders said, was the fact that the latest construction spending report was well ahead of expectations with most of the gains in private housing.

Sonders isn’t alone in her estimation that real estate could be bottoming out. In a report released Monday, Clear Capital, a real estate valuations company, predicted that prices in the San Francisco-Oakland-Fremont metropolitan area will remain flat this year versus a 4.7 percent drop in 2011.

The firm said Silicon Valley should see a 1.6 percent increase in home prices, compared with a 2.5 percent drop last year. "This region overall is doing pretty well," Clear Capital research director Alex Villacorta told the San Jose Mercury News.

The positive signals add more evidence that the housing market overall is moving in the right direction as we begin 2012.

Of course, we’ll continue to face headwinds. While foreclosures declined sharply last year, the drop was in part due to legal and regulatory issues that prompted lenders to delay action on delinquent borrowers. That “shadow inventory” of distressed homes could come back on the market this year, although it’s doubtful we’ll return to 2010 levels again.

The jobs picture is improving, although there will be bumps along the road as we saw this week. Weekly unemployment claims spiked last week more than expected after companies let go of thousands of holiday hires.

And while predicting that the real estate market has bottomed, Schwab’s Liz Ann Sonders believes the recovery in housing will be a slow and gradual one, similar to how she sees the recovery in the overall economy playing out.

Nonetheless, the economic and housing news in recent months continues to trend higher and offer reason for encouragement that 2012 will truly be a “Happy New Year.”

Buy now!!!

2012-01-17T13:03:00.000-08:00

It's a great time to be a buyer in today's real estate market!! If you are ready to jump into the market and buy or have any real estate related questions, please don't hesitate to contact me. I look forward to hearing from you and would welcome the opportunity to work with you.

A better future ahead?

2012-01-17T12:24:00.000-08:00

All signs point to 2011 as the year that pushed Silicon Valley right out of the recession. But it wasn't without its ups and downs. Real estate came back with a bang — major housing projects ramped up with thousands of units under construction. High-tech companies and developers haggled over campus space, as they quickly absorbed 100,000-plus square foot sites. On the flip side, health care hit some challenges with reform uncertainty and a higher number of uninsured heading into the emergency rooms for treatment. Technology and venture capital was a mixed bag — Solyndra went belly up, while Facebook and Google saw massive growth. And a number of CEOs were shown the door.
Let's talk more later

Some facts about real estate in the Bay.

2012-01-09T12:29:00.000-08:00

The median price paid for all new and resale houses and condos sold in the Bay Area last month was $363,500. That was up 3.9 percent from $350,000 in October, and down 4.3 percent from $380,000 in November 2010. The median has declined on a year-over-year basis for the last 14 months.

The low point of the current real estate cycle was $290,000 in March 2009. The peak was $665,000 in June/July 2007. Around half of the median’s peak-to-trough drop was the result of a decline in home values, while the other half reflected a shift in the sales mix.

Last month distressed property sales – the combination of foreclosure resales and “short sales” – made up 47.8 percent of the resale market. That was up from 45.2 percent in October and 46.7 percent a year ago.

Foreclosure resales – homes that had been foreclosed on in the prior 12 months – accounted for 26.5 percent of resales in November. That was up from 25.3 percent in October, and down from 28.6 percent a year ago. Foreclosure resales peaked at 52.0 percent in February 2009. The monthly average for foreclosure resales over the past 15 years is about 10 percent.

Short sales – transactions where the sale price fell short of what was owed on the property – made up an estimated 21.3 percent of Bay Area resales last month. That was up from 19.9 percent in October and 18.1 percent a year earlier. Two years ago the estimate was 16.5 percent.

Last month 31.0 percent of Bay Area sales were for $500,000 or more, down from a revised 31.3 percent in October, and down from 37.2 percent in November 2010. The low for the current cycle was January 2009, when just 22.7 percent of sales crossed the $500,000 threshold. Over the past 10 years, a monthly average of 47.8 percent of homes sold for $500,000-plus.

Government-insured FHA home purchase loans, a popular choice among first-time buyers, accounted for 22.3 percent of all Bay Area home purchase mortgages in November. That was up from 21.2 in October and down from 23.9 percent a year earlier.

One indicator of mortgage availability that had seen improvement earlier this year dropped again in November, when 11.6 percent of the Bay Area’s home purchase loans were adjustable-rate mortgages, down from a revised 12.9 percent in October, and up from 9.9 percent in November last year. Over the last decade, ARMs have accounted for 51.0 percent of all purchase loans. ARMs hit a low of 3.0 percent of purchase loans in January 2009.

Jumbo loans, mortgages above the old conforming limit of $417,000, accounted for 29.7 percent of last month’s purchase lending, up from a revised 27.9 percent in October, and down from 33.4 percent a year ago. Jumbo usage dropped to 17.1 percent in January 2009. Before the credit crunch struck in August 2007, jumbos accounted for nearly 60 percent of the Bay Area purchase loan market.

Last month absentee buyers – mostly investors – purchased 22.6 percent of all Bay Area homes sold, up from 22.3 percent in October and 19.1 percent a year ago. The peak was 23.4 percent in February this year, while the monthly average since 2000 is 13.9 percent. Absentee buyers paid a median $240,000 in November, down from $243,500 in October and the same as a year earlier.

Buyers who appear to have paid all cash – meaning no corresponding purchase loan was found in the public record – accounted for 27.9 percent of sales in November, down from 28.5 percent in October but up from 25.2 percent a year ago. The record was 30.5 percent last February, while the monthly average going back to 1988 is 12.1 percent. Cash buyers paid a median $240,000 in November, down from $248,000 in October and down from $250,000 a year earlier.

For more information let's set up a time to talk real estate and you.

Should you buy a home in 2012? We love to listen to the news...what are others saying?

2011-12-28T09:04:00.000-08:00

Click on the link below and listen to what is being said. Let's talk about how I can help you get the right home for you.

http://www.linkedin.com/news?actionBar=&articleID=1001743220&ids=3kOc3sRe38Nc34Ie38RejwTcj4MciMRcPgRd3wQc30Nb3sTejgOe3wVeiMMcz8Pd3sNc30N&aag=true&freq=weekly&trk=eml-tod2-b-ttl-0&ut=34WAB7fTL__501

Are home prices rising already? Time to make your move....

2011-11-23T13:00:00.000-08:00

SAN JOSE, Calif. (KGO) -- Here's the best news you've heard in years about Bay Area real estate. A new report offers not just a glimmer of hope in California's housing market, but predicts a roaring comeback over the next six years. We could be poised for a dramatic comeback.

ABC7 spoke with the California director of the Economic Forecast and he's predicating a rise in home prices is going to be the convergence of a number of factors. He is suggesting that more jobs, fewer distressed properties, and those historic low interest rates will all play a role in this turnaround.

The same panel of economists who warned the California housing bubble was going to burst is now predicting homes prices are ready to rebound.

"I am absolute thrilled that we are finally coming out with something positive," said Cherie Colon from Windermere Real Estate.

UCLA economists are predicting a steady climb in the median price of existing California homes. The UCLA Anderson Forecast anticipates an 11.5 percent price jump next year. The forecast calls for another 10 percent increase in 2013 and a median price of nearly $440,000 by 2017 -- that would represent a 52 and a half percent increase over today's prices.

Mike Sibilia is president of the Santa Clara County Association of Realtors. He said, "52 percent by 2017 for median price, that is aggressive, but we've seen it before, and what I like is the steady growth is what I like to see."

The National Bureau of Economic Recovery says the recession ended in June 2009, but the foreclosure crisis and high unemployment have weighed heavily on any recovery.

Now, Jean Haneke is seeing signs of life. She's looking to sell her home in Morgan Hill.

"There are houses that are closing in our area, there are good sales, we've seen statistics on it, and we're looking for that sort of thing as a seller," said Haneke.

Foreclosures still count for about one third of all home sales in California and bay Area prices are especially zip code driven, but the UCLA Anderson Forecast suggests as a whole, home prices have hit bottom.

"I think locally we have already seen the start of it in some markets, but also don't expect it all to come because there are still the statistics that show that we're probably not going to be at 2006 levels again for 10 years or more," said Colon.

While the UCLA economist predict double-digit increases in terms of home prices, they say that home sales will remain relatively flat, bouncing in the 3 to 5 percent range, with the most sales activity taking place between 2013 and 2015.

(Copyright ©2011 KGO-TV/DT. All Rights Reserved.)

13,780 Homes Sold Yesterday

2011-11-18T23:02:00.000-08:00

To all those who have declared the real estate market dead, we want you to know that over 13,780 houses sold yesterday, 13,780 will sell today and 13,780 will sell tomorrow.

That is the average number of homes that sell each and every day in this country according to the National Association of Realtors’ (NAR) latest Existing Home Sales Report. NAR reported that sales had increased 7.7% over the month before and 18.6% over the year before. According to the report, annualized sales now stand at 5.03 million. Divide that number by 365 (days in a year) and we can see that, on average, well over 13,000 homes sell every day.

We realize that these numbers are below the record for homes sold in 2006. We also know that we may never see those numbers again (and that is probably a good thing). But to say that the current real estate market is dead or that houses are not selling is totally inaccurate.

It's the time to buy now!

2011-11-15T10:49:00.000-08:00

Ok, I know many of us have been saying this for some time now, but when the news media starts saying it – well, I guess that makes people stand up and take notice. A number of recent articles in the national press are now saying that it might be the right time for consumers, who have largely been on the sidelines, to jump back into the housing market.

I understand why potential buyers, whether first-timers or move-up buyers, remain cautious given all the economic headwinds and bad news out there. Economic growth has been slow, the jobless rate too high, and don’t even get me started about the politics in Washington, the euro-zone debt problems and the challenges facing Greece.

But I often urge buyers to examine what I like to call your “personal economy.” That is, if you have a steady job, reasonable credit, and enough savings for a solid down payment, you might want to take a deep breath and think about taking the leap into the housing market while prices and interest rates are so low.

Read what two of the nation’s top business publications, Fortune magazine and The Wall Street Journal, are telling their readers:

“Forget stocks. Don't bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing.”

- “Real estate: It’s time to buy again,” Fortune Magazine article by Shawn Tully.

“Two key measures now suggest it's an excellent time to buy a house, either to live in for the long term or for investment income.”

- “It’s Time to Buy that House,” The Wall Street Journal article by Jack Hough.

Tully in the Fortune piece interviewed Mike Castleman, founder and CEO of Metrostudy, who has spent more than 30 years tracking data on the inventory of new homes in the United States. Each quarter, inspectors go through 45,000 subdivisions from California to Maryland. According to Fortune, inspectors examine 5 million lots and record whether they contain a house under construction or completed.

What has Castleman observed? The glut of new homes that the U.S. had a few years ago at the peak of the market has rapidly disappeared. Instead, he told Tully that he has seen a rapidly declining inventory that could force prices higher. In the 41 cities Metrostudy looked at, there are just 78,000 houses vacant and for sale, or under construction – less than a quarter 343,000 units at the height of the market in 2006 and less than the total a decade ago.

"The talking heads who are down on real estate will hate to hear this, but America needs to build a lot more houses,” Fortune quoted Castleman as saying. “And in most markets the price of new homes is fixin' to rise, not fall."

Metrostudy collects figures on the number of homes that are vacant and for sale in each city, and the number of months it takes to sell all them to determine whether individual markets have a surplus or a shortage of homes. "If we had anything like normal levels of buying, those houses would sell in 2½ months," Castleman told Fortune. "We'd see an incredible shortage. And that's where we're heading."

Fortune says that consumers may be confused by conflicting news reports on the housing market, and that could be impacting their confidence in buying a home. On one hand, housing affordability has never been better. But on the other hand, they continue to see housing starts falling and home prices still heading down in some markets.

Tully said economists Robert Shiller and Karl Case, authors of the S&P/Case-Shiller Home Price indices, have different views about where we ware in the cycle. While Shiller remains pessimistic, Case is more optimistic that things are starting to turn around, telling Fortune that "the lack of new home building is a huge help that a lot of people are ignoring.”

In its analysis of the housing market, Fortune noted that it’s important to look at the economic fundamentals of home ownership to see where the market is headed. As home prices rose sharply over the past decade, Tully said the magazine warned that a bubble was forming due to the level of new construction and the cost of owning a home compared to renting one.

“Eventually reality set in, and prices plummeted,” Tully said. “Our current view focuses on those same fundamentals — only now they're pointing in the opposite direction,” Fortune noted. “So let's state it simply and forcibly: Housing is back.”

The Fortune article said what will drive the recovery of the housing market is a sharp drop in new home construction, as noted in the Metrostudy research, as well as a big drop in home prices. Home prices have fallen about 30% nationwide since 2006, Fortune said, and more than 50 percent in hardest hit markets. With unusually high affordability levels, the article noted, Americans will start returning to the market.

While no one can predict with certainty the future of home prices and sales volume, it is safe to say that a turnaround will eventually happen. Timing the market is very difficult because you will never know the absolute bottom until prices have started going back up again. My advice is to look closely at your own “personal economy” and talk with a professional Realtor to see if now might be a good time for you to take advantage of low prices and rates, and join others in taking the plunge into buying a home.

CALL ME TODAY AND LET'S TALK REAL ESTATE 408 676 9657

60 Days till 2012!!

2011-11-01T10:09:00.000-07:00

Hope you all had a safe and fun Halloween yesterday!

Happy 1-11-11
This means that you have 60 days to become a new homeowner or to become a 1st time homeowner before 2012.

Call me today and let's talk about how I can help you with your most important asset.
408 67 My MLS (69657)

A Housing Slump Everywhere?

2011-10-28T12:17:00.001-07:00

Housing remains mired in a slump in most of the country, with nearly one in four homeowners under water.
Are you drowning in debt? When did you make your last mortgage payment? Call me today and let me tell you how I can assist you with your real estate.

As gloomy as the most of the housing market may seem with all the short sales, REOs and foreclosures, a handful of bold investors are attempting to make millions on flips of high-end houses.

Do you know the current value of your home? Call me today for a FREE home market analysis of your home.

monica.manocha@gmail.com

A homeowner or landlord??

2011-10-28T12:14:00.000-07:00

HOUSE TALK OCTOBER 7, 2011
Should a First-Time Buyer Be a Landlord?
By JUNE FLETCHER

Q. I am a single professional in my 20s who rents with a few roommates. I read your comments about how Austin is a good place to invest in property, given the volatility of the stock market. I, too, am considering it. I am thinking of buying a three-bedroom, $150,000 house in a good neighborhood. With help from my family, I can put 20% down. If I rent out the extra two rooms, the income will cover the property tax and mortgage. But I travel a lot for work and I am not sure whether my company will transfer me or if I even want to stay in this area. Should I do it?

--Austin, Texas

A. I applaud your desire to invest in your financial future. And landlords get generous tax breaks while collecting rental income. But from what you've told me, I recommend holding off buying a home.

Managing a property—which includes screening tenants, collecting rents, paying bills and keeping the lawn mowed—while you are traveling is difficult. But my bigger concern is that you are not sure if you are even going to stay in the area. Unless you buy a fixer upper at a discount, rehab it and resell it quickly, the only way to make money in real estate is to hold on to a property until it appreciates. Even though prices have been rising in Austin, you will need to stay in the area for at least a few years to recoup your costs on a market-rate house.

Developments: Mortgage Rates Fall Below 4%

As a homeowner and landlord, you will have many expenses besides taxes and a mortgage. Assuming you put 20% down on a $150,000 house in Austin, you will have to pay an estimated $4,938 in closing costs, according to Zillow's calculator. You also will have to budget for repairs and maintenance—expect to pay between 1% and 3% of the home's purchase price each year—as well as for repainting and freshening the rooms when tenants move out. You will need insurance, and if you have a homeowners association, you will have to pay dues. When you sell, you will have to pay a broker's commission, probably around 6% of the selling price, and some fix-up costs.

Rental income will help to defray these expenses, but you cannot depend on a steady stream. There will be periods when one or more of the rooms will be vacant, and you may have to shoulder some extra costs to evict someone who doesn't pay the rent. You should have about six months of mortgage payments in reserve to cover these possibilities. You also should have cash on hand to handle expensive emergencies, like a furnace that conks out in a cold snap. Since you will have to tap family funds for a down payment, it doesn't sound like you have enough of a cushion yet.

That doesn't mean that you should give up on the idea of owning property. Just postpone it until you know where you will live and are on a more solid financial footing. In the meantime, continue to familiarize yourself with various neighborhoods and properties, talk to lenders and work with a real estate agent who understands your situation. Then you will be in a position to act when you are ready to put down roots.

The Silicon Valley Housing Market Update

2011-10-06T12:29:00.000-07:00

Sales of existing single-family Bay Area homes rose in August from the previous month and compared with a year ago, according to a report Friday. But part of the increase was attributed to August having more business days to record deals, and sales were below normal for the month, typically one of the busiest for home buying.
"Lower prices and lower mortgage rates have drawn more people off the sidelines" to buy homes, said Andrew LePage, a spokesman for DataQuick, the real estate information service that issued the report. "But there are still a lot of folks holding off waiting to see if prices have bottomed out so they don't buy and find themselves in the position of others who owe more on their home than it's worth."
A total of 1,183 existing single-family Santa Clara County homes were sold in August, an increase of nearly 9 percent from July and up nearly 12 percent from a year ago. In Alameda County, the 1,079 homes sold represented an increase of 2 percent from July and about 7 percent from a year ago. Contra Costa County's 1,210 sales were up about 10 percent from July and 12 percent year over year.
The median price of homes sold in August was up slightly from July in Alameda, Contra Costa and Solano counties, but sagged a bit in Santa Clara, San Mateo and San Joaquin counties, and was unchanged Bay Area-wide compared with a year ago.
The median price in August was $561,750 in Santa Clara County, $399,000 in Alameda County
Advertisement and $280,000 in Contra Costa County.

Many real-estate agents based in Cupertino, are encouraged by what they are seeing. They noted that five developers recently submitted bids on a Sunnyvale parcel of land in hopes of building new homes there. In addition, they are seeing a rise in the price of entry-level homes in Palo Alto, Cupertino and West San Jose -- areas that had been among the last to succumb to falling prices when the housing market tanked in 2008.

"I definitely am seeing improvement," Walker said. "Buyers are feeling more confident" about entering the market.
Sonia Dueñas and her husband bought a five-bedroom house in West San Jose in August for $810,000 after deciding "the time was right" for their family to move up from their townhome north of the city's downtown.
"It was a combination of things" that prompted the purchase, Dueñas said. "We felt comfortable with the interest rates, we qualified for the property without any issues, we were looking for certain things in a home, and it just happened to be the right one."
Besides, she added, "I have a boy and girl, and they were still sharing a room, so it was time to make a change."
But not everyone is finding it easy to get into the market. Robin Dickson, who works in the Danville office of J. Rockliff Realtors, said many mid-range buyers are having a tough time.
"The high end is becoming a little more solid, and the low-low-end investors are everywhere," she said. "But the difficulty in obtaining financing is really affecting the move-up buyers."
Because a lot of people, even with good credit, can't qualify to get a mortgage, cash is king, Dickson said. She said cash deals in her office are up about 30 percent compared with last year. She added that many buyers are looking at Brentwood and Oakley for housing options because, "you can buy so much more house for a lot less."
Kevin Kieffer, of Keller Williams Realty, said he is getting 20 to 25 calls a week from investors looking to buy low-end properties, mostly in Concord and Martinez.
"With what's going on in the stock market, people are looking for other ways to invest in property," he said.
However, some high-end home buyers are facing difficulties, too.
Sean Ryan, an entrepreneur specializing in software, two months ago paid $1.2 million in cash for a five-bedroom Danville house. But when he recently sold his previous home nearby, he said, it closed at about a 5 percent loss.
"We bought the new house with the understanding we could sell the existing home, but the market turned out to be a little more difficult than we thought it would be," he said.
Despite August's uptick in sales, "I don't think it means we're on a rebound," said Jeff Hansen, who handles home sales in Santa Clara County for Keller Williams Realty. But he added that it's hard to draw conclusions from just one month.
Comparing June through August, this summer's sales don't look too impressive. Santa Clara County had 3,573 single-family home transactions during the three-month period this year, which was 20 more than during 2010 and 227 more than in 2008. But over the past decade, the number of sales averaged 4,796, said DataQuick spokesman LePage, who believes the weak economy, political wrangling in Washington and worries about the nation's debt have caused many potential homebuyers to hold off venturing into the market.
"In a historical context, it's been a very slow summer," he said. And judging from the August sales data, "it definitely didn't finish with a bang."

The housing market is like temperatures!!

2011-08-02T12:38:00.000-07:00

Bay Area Housing Market Heating up Along with Summer Temperatures

Maybe we just had a late spring. That’s one possible explanation for what we’re seeing in the Bay Area housing market. Normally, the real estate market picks up in March, April and May and then takes a breather over the summer for vacations, graduations, weddings and other activities. But this year it seems like that’s being reversed.
After a modest spring, the local housing market has been heating up this summer with strong sales in June and even into July in many areas. Sales activity has been especially robust in the higher end of our markets – over $1 million in much of the Bay Area and $2 million and up in San Francisco. But even the mid-level market was surprisingly active (more on that below).
As I was combing through last month’s sales figures, I noticed an interesting trend: In most of our Bay Area markets in June we had the highest level of million-dollar home sales since the summer of 2008. You might recall that was just weeks before the collapse of Lehman Brothers sent the financial markets into a tailspin and pushed our economy into the “Great Recession.” Now, three full years later, we’re seeing a much brighter picture for the local housing market.
Silicon Valley – There were a whopping 284 million-dollar home sales in June, up from 230 the previous month and the highest level the region has seen since June of 2008. The very high end of the market – those homes over $2 million – saw sales spike to 52 from 36 a year ago;
Clearly, the Bay Area’s relatively strong economy – especially the robust tech sector – is playing a key role in our housing market. As Inman News put it in a Friday article, “Tech is back -- and tiptoeing along behind it, at least by some measures, is the San Francisco-area real estate market.”
“Indeed, technology-based industry -- which drove Bay Area home prices to fabled levels during the headiest days of the housing boom -- seems to have found its legs,” Inman reported. At the end of 2010, San Francisco had an estimated 30,700 tech jobs, compared with the 32,800 at the peak of its tech boom in 2001, according to an analysis by real estate firm Jones Lang LaSalle.
This all is not to suggest the housing market is completely out of the woods. Real estate is very much a local business. And while many of our markets are on the mend, others are still softer than they were a few years ago. And there still is an overhang of distressed properties that will continue to come on the market as bank owned REO sales in the months ahead.
While we take quite serious the nation’s fragile economy, and most recently the stalled talks to come to terms with our national debt limit, we can be thankful for the Bay Area real estate activity that continues to move forward. We are fortunate to live and work where we do. The limited housing stock, diverse job base, incredible universities, and great weather are all factors that help homebuyers focus on these terrific home values and low mortgage rates.
Silicon Valley – The best homes are getting lots of offers. Our Cupertino office says the majority of its sales are multiple offers. Seems like we are having a delayed spring. New single-family home listings in good areas of Los Altos, Mountain View and Sunnyvale are getting multiple offers and selling up to 15% over asking price, according to our Los Altos manager. Activity has increased recently in the Los Gatos area with more properties seeing multiple offers. Well-priced homes are continuing to sell at a quick pace while not so well priced homes continue to languish. Our San Jose Almaden office says a number of price reductions have led the way toward sales over the last week. Prices overall are not going up, but in fact appear to have dipped a bit. Multiple offers still abound for the “good deal.” In the San Jose Willow Glen area, open houses are pretty busy and sales have been steady. The Saratoga market seems to be steady. One home listed in Saratoga for $1.5 million received 18 offers and was bid up astronomically.
That’s it for now. Enjoy the summer weather, and have a great week!

LOCATION LOCATION LOCATION

2011-07-10T22:11:00.000-07:00

Bay Area housing market: It’s all about location

It’s an old real estate adage, but it couldn’t be truer today. When it comes to the health of the Bay Area (and the rest of the country, for that matter), the three most important rules for the housing market are location, location and location.

As readers of this column know by now, the upper end of the Bay Area market has fared relatively well in recent years while entry-level and mid-priced communities around the Bay have struggled far more to recover from the recessionary downturn.

I talked about this disparity in an interview with the San Jose Mercury for an article that was published on Sunday. As the Mercury noted, housing prices in many affluent cities in Silicon Valley and the Peninsula are nearing their pre-recession highs while other working-class communities have a long ways to go in their recovery.

One reason for this trend, as I pointed out to reporters, is that more-expensive markets never saw home prices drop as sharply as the areas with more subprime lending and subsequent foreclosures. Lower-priced communities had more marginal buyers, many of whom also made zero or small down payments. More of those buyers also took out resetting adjustable loans.

On the other side of the coin, residents and potential buyers in high-end communities generally haven’t been impacted by the overall economic downturn as much as homeowners in other areas. In Silicon Valley in particular, the strength of the tech industry and the growing number of successful start-ups and initial public offerings have created a tremendous number of affluent, well-capitalized buyers who are bidding up prices of a limited number of homes.

Because home prices in affluent communities never dropped as much as those in entry-level markets, these cities have less ground to make up in recovering from the downturn. Palo Alto’s median sale price, for example, is off about 12 percent from its peak in 2008 while the median in several low-to-middle income markets is still down nearly 50 percent, according to the news report.

Two of the largest Bay Area cities with a diverse mix of housing are recovering, albeit not quite as fast as Silicon Valley, according to the reports. San Francisco’s median sale price is about 22 percent below its 2007 peak while San Jose is 36 percent below its high-water mark. It’s important to note the sheer size of San Jose and San Francisco populations reflect diverse housing and incomes, compared to a small upscale community such as Palo Alto or Hillsborough. The same would hold true for Sausalito’s recovery versus County of Marin, for example. The smaller the community, the quicker median prices can move in either direction with just a few sales. In the East Bay, prices are rebounding faster in high-end communities like Orinda, Lafayette and San Ramon. Never before has the role of the local real estate professional been more important to help customers understand all the data available and sort through the appropriate comparable properties when home shopping or selling.

The market figures came from DataQuick, the La Jolla-based real estate information service. DataQuick compared quarterly median prices for single-family resale homes in 74 Bay Area cities since 2007 for stories that ran in the Mercury, Oakland Tribune and several other Bay Area news organizations.

According to MLS: Greater Bay Area Housing Market News

2011-07-07T08:55:00.000-07:00

Greater Bay Area Housing Market Report

More Articles

For economists, poor jobs and housing data indicate a slowing economic recovery. For homebuyers, the news means lower prices and better mortgage interest rates. As of June 2011, qualified homebuyers - those with excellent credit and with funds available for down payments – couldn’t be in a better position to buy a home.

Prices are at their lowest since 2002, according to the Q-1 2011 S&P/Case-Shiller Index. Since 2006, prices have fallen 33%, greater than the 31% decline recorded during the Great Depression. According to the National Association of REALTORS, the national median existing-home price for all housing types was $163,700 in April, 5.0 percent lower than in April 2010. Distressed homes, which sell at a discount of approximately 20%, were 37% of sales, up from 33% a year ago.

Believe it or not, there’s good news hidden in the numbers. Analysts at Capital Economics say housing has actually overcorrected, and is undervalued by approximately 24%. Paul Dales, U.S. analyst, reports that currently U.S. housing is undervalued by approximately 24%, the lowest amount in 35 years. For that reason, he predicts that the housing slide is nearing its end. Foreclosures, which have pressured both prices and real estate appraisals for non-distressed homes, are still high -- but are leveling off. RealtyTrac says that U.S. foreclosure filings were down 9% in April 2011 from March, and down 34% from a year ago.

It takes confidence to buy a home. On June 3, 2011, the government reported that the jobless rate rose from 9.0% to 9.1%, a reversal of three months of earlier gains, which is likely to continue to keep the distressed home pipeline full for months to come. The news has sent mortgage interest rates plummeting. After a seven-week slide, the Freddie Mac survey announced on June 3, 2011 that the benchmark 30-year fixed-rate mortgage averaged 4.55%, down from 4.60% the prior week and 4.79% a year ago.

California
Like the rest of the nation, California home sales also declined in April 2011 from the previous month, but were up 5% over a year ago. And, unlike the national trend, home prices actually increased. The statewide median price of an existing, single-family detached home sold in California rose 2.5 percent in April to $293,570, up from a revised $286,510 in March, says the California Association of REALTORS (C.A.R.).

The combination of an average 4.8% fixed-rate plus prices well below the peak of 2006, point to improved housing affordability. The percentage of buyers who could afford to buy the median-priced, single-family home rose to 53% in Q1-2011, up from 50% in Q4 2010, according to C.A.R.’s Traditional Housing Affordability Index (HAI). All eyes are on the White House proposal to eliminate Fannie Mae and Freddie Mac and to reduce the high-cost-area conforming loan limit from the temporary $729,750 to a permanent $625,500. It’s unknown whether or not the pending rule will temporarily boost housing sales in high-cost areas such as the Greater Bay Area, as buyers try to close their loans before the temporary ceiling is removed at the end of September 2011.

Local Sales Trends – May 2011
Locally, according to MLSListings May 2011 County Indicators Report, home sales and inventory figures mirrored elements of both the regional and national pictures, but this market appears to be charting its own course. While overall performance in Monterey, Santa Clara, San Mateo, San Benito and Santa Cruz counties fell compared to the same time last year, month-over-month changes are indicating some positive signs.

Closed sales in May dropped in four of the five counties from the same month last year. Santa Clara County had the largest drop at 21%, while San Mateo and Monterey each dropped by 15%. San Benito sales were down 8%, and San Mateo remained flat.

Compared to last month, sales increased 15% in San Mateo County, 4% in both Monterey and San Benito, dropped 3% in Santa Clara and remained flat in Santa Cruz.

Inventory increased or remained flat from the same month last year in all five counties except Monterey and Santa Cruz, where they were down 6% and 4% respectively. San Benito inventory was up 6%, San Mateo up 1%, while Santa Clara remained flat.

Compared to last month, inventory increased or remained flat in all counties. Inventory was up 8% in Santa Cruz, 4% in Monterey, 3% in San Mateo, and remained flat in both San Benito and Santa Clara.

New Listings compared to the same month last year dropped 15% in Monterey, 1% in Santa Clara, but increased 18% in San Benito, 2% in Santa Cruz, and just 1% in San Mateo.

Compared to last month, listings were up 18% in Santa Cruz, 8% in Monterey, 1% in both San Benito and Santa Clara, and decreased 4% in San Mateo.

Median Price dropped in four of the five counties compared to the same month last year. The largest drop occurred in Santa Cruz at 16%, San Benito was down 6%, Monterey down 5%, Santa Clara down 4%, and San Mateo showed the only increase at 10%.

Compared to last month, coupled with strong sales, San Mateo’s median price rose 14%, San Benito was up 6%, Santa Clara up 3%, while Monterey dropped 3% along with Santa Cruz which was down 2%.

Days on Market increased substantially from the same month last year in all counties except in Santa Cruz. DOM increased 84% in San Benito, 49% in San Mateo, 32% in Santa Clara, 13% in Monterey, and dropped 15% in Santa Cruz.

Compared to last month, days on market increased 35% in San Benito and 6% in San Mateo. DOM dropped 24% in Santa Cruz, 14% in Santa Clara, and 3% in Monterey.

Mortgage rates flat after hitting yearly low

2011-06-22T15:03:00.000-07:00

Mortgage rates flat after hitting yearly low
By Derek Kravitz

Fixed mortgage rates stayed roughly flat after falling for eight weeks.

The average rate on the 30-year loan ticked up from a yearly low of 4.49 percent to 4.50 percent, Freddie Mac said Thursday. The average rate on the 15-year fixed mortgage, a popular refinance option, fell to 3.67 percent from 3.68 percent. That's a low for the year.

Rates tend to track the yield on the 10-year Treasury note. The 10-year yield has been dropping as fears over that economic recovery is slowing.

Most people can't take advantage of the low mortgage rates because they can't meet tougher lending requirements. And many who could afford to refinance likely did so last year, when rates fell to their lowest levels in decades.

Sales of new and previously occupied homes rose in April. But sales are well below healthy levels as waves of foreclosures have pushed prices down. Many would-be buyers are holding off, worried that prices have yet to bottom out.

And prices are expected to keep falling until the glut of foreclosures for sale is reduced, companies start hiring in greater numbers, banks ease up on their tougher lending rules and more people think it makes sense to buy a house again. In some areas of the country, that could take years.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a sigle day.

Let's set a time to talk today about how these mortgage rates can help you with your real estate dreams?

Call Monica @ 408 399 1495

Recovering Housing Market?

2011-06-15T16:42:00.000-07:00

http://cbnctabletalk.wordpress.com/

REALTOR® Magazine-Daily News-7 Highest-Performing Major Housing Markets

2011-06-13T12:05:00.000-07:00

REALTOR® Magazine-Daily News-7 Highest-Performing Major Housing Markets

2011-02-11T15:52:00.000-08:00

San Jose Summary

The median sales price for homes in San Jose CA for Nov 10 to Jan 11 was $393,713. This represents a decline of 2.2%, or $8,802, compared to the prior quarter and an increase of 0.8% compared to the prior year. Sales prices have depreciated 37.5% over the last 5 years in San Jose. The average listing price for San Jose homes for sale on Trulia was $481,225 for the week ending Feb 02, which represents an increase of 2.6%, or $12,391, compared to the prior week and an increase of 3%, or $14,009, compared to the week ending Jan 12. Average price per square foot for San Jose CA was $289, a decrease of 1.7% compared to the same period last year.
Popular neighborhoods in San Jose include Willow Glen, Evergreen, Edenvale, Alum Rock, Berryessa, and North San Jose.

Silicon Valley home sales slump continues in December

2011-01-21T13:07:00.000-08:00

Silicon Valley's home sales slump continued in December, with both the number of transactions and median prices in Santa Clara County down from a year earlier.

The number of single-family houses that changed hands was down 9.9 percent last month from December 2009, San Diego-based MDA DataQuick reported today. The median price dropped 1.7 percent to $517,000.

The volume of condo sales fell 7.1 percent, and the median price was down 11.6 percent to $294,250.

The market in Silicon Valley reflected trends throughout the Bay Area, where real estate transactions were "dominated by distress sales," with move-up buying put on hold, DataQuick reported.

"While the dicey economy and employment concerns are major factors, tight mortgage credit is also a big issue right now, especially for the upper half of the market," DataQuick President John Walsh said in a news release.

"There's a lot of pent-up supply and demand out there, which will start to meet when the lenders reopen their spigots a turn or two," Walsh said.

Real Estate

California median home prices dip in DecemberHome sales hit 13-year low; slow recovery aheadMortgage rates: Average on 30-year fixed loans rises to 4.74 percentU.S. home sales: 2010 was weakest year since 19972010 was 2nd-worst year for home construction in half-centuryHome sales: Southern California median price flat in DecemberRent increases on the way, analysts sayMortgage rates: Average on 30-year fixed home loan dips to 4.71%

Call me today and let's talk about how this effects you and your real estate needs today.

Call 408 399 1495

Top 5 Tips for Selling Your Home

2010-12-22T11:04:00.000-08:00

Short Sale anyone?

2010-11-19T08:59:00.000-08:00

Have you ever wondered why they call it a short sale when it actually takes so long to close escrow?
Actually short sales are more popular than regular sale and this is due to the great prices and inventory is great.
At this point the average months of inventory (MOI) is about 4 months, which is different in the different areas throughout the Bay Area.
Have you considered a short sale for your first time home purchase or even an investment?
With rates so low this is a great time to invest in real estate.
Call me today and lets talk about you and how short sales can work for you.

Have a great day.

What to do now?

2010-11-02T12:58:00.000-07:00

SF Sept Article

1st time Home Buyer Seminar

2010-09-28T13:51:00.000-07:00

Happy Tuesday to you all!
I wanted to let you know that November 3rd @ 6:40 there will be agreat 1st time Home Buyer Seminar in Los Gatos. This seminar will educate you on the home buying process, FHA programs and the myths and facts about financing options.

This will be a great learning opportunity for you or your colleagues and friends and family.

Please call me @ 408 67 MY MLS to confirm your FREE seat.

www.monicamanocha.com

Monica

Los Gatos Update on homes...Did you know?

2010-09-14T11:45:00.000-07:00

Listing Type Number Median Price Price Change from August

Homes for Sale 495 $1,275,000 +2.0%
New Homes 0 n/a n/a
Foreclosures 162 $813,000 +0.6%

Los Gatos is one of the Santa Clara Valley's most desirable residential communities. It boasts great weather, excellent schools, breathtaking mountain views and a quiet village atmosphere. Just a short drive from the Santa Cruz beaches, Silicon Valley workplaces, and the cultural attractions of Los Gatos and San Francisco, Los Gatos offers the best of all worlds in one well located place.

Call me today and lets find out what area suits you best.

408 399 1495

Bay Area Update

2010-09-07T13:27:00.000-07:00

Silicon Valley –
Our Coldwell Banker Los Altos office reports sales are steady while inventory is increasing. The Almaden office says inventory is decreasing and sales are steady. Similarly, the market is steady in Los Gatos. But well priced homes are still selling – a $2 million dollar home came on the market and sold within two days. Sales continue to be slow and inventory appears to be on the rise, according to our San Jose Main office.

Summer vacations may be drawing to a close and yet agents and clients are becoming more active.

Buyers may be waiting to hear if Congress will be re-instating the first time buyer tax credit, which is a topic of conversation but us realtors are not blessed with a crystal ball.

Open houses this past weekend were slower than normal with minimal traffic thru most.

On a more positive note.. it is the lower than normal interest rates that are helping sales in the upcoming months with more buyers looking and the phones ringing.

It is a great time to buy and so let me know how I can help you further.

Silicon Valley Million Dollar Home Sale Prices are Up!

2010-08-24T12:23:00.000-07:00

According to the Business Journal in Silicon Valley and other stats the market showed the the median sale prices in Silicon Valley rose again in July over last year.
There was a total of 244 homes sold for over $1m in Santa Clara County in July 2010 which is up 8% from July 2009.

The market is now picking up slowly. Last year the avg days on market was 53 and this year we are down to 41.

Let's talk about when would be a good time for you to sell your home.

We are always free to meet with you or your referrals and talk real estate.

Have a great week!

Bay Area housing market slows as summer vacation season takes hold

2010-08-12T11:32:00.000-07:00

As summer gets into full swing, the Bay Area housing market appears to be taking a bit of a vacation break. While buyers are still out in the market in some communities, in many parts of the Bay we’re seeing the usual summer slowdown with modest open house attendance and fewer sales. Some of this softening is attributed to the time of year and some of it is perhaps due to the end of the federal tax credit.

But the summer hiatus hasn’t impacted all communities equally or even all neighborhoods within those communities. While many offices report very quiet activity, agents in other offices are seeing continued strong interest by buyers looking to capitalize on attractive pricing and record-low mortgage rates.

This schizophrenic market is exemplified by Menlo Park’s observations: “One day, we see a sale and think ‘Wow! How did they ever get that price for this house?" And then the next day we’re saying, ‘I can't believe that house is still sitting there; it’s a great value." Down the Peninsula, high-end properties between Palo Alto and Atherton are still selling– some even before hitting the market, with about a third of sales attracting multiple offers. Cupertino declares that sales activity is up with listing inventory decreasing. Similar brisk activity was reported in central Marin County.

In general, the buyers – those who haven’t jetted off to Hawaii or trekked up to Lake Tahoe – are still out looking but they’re being very, very cautious about taking the next step and making an offer. Homes that are well maintained and perceived to be a really good value are indeed selling. But buyers want to make sure they’re getting the best deal, and often are making offers well under the list price.

It’s understandable that buyers are being cautious and are looking for direction, given the macro-economic issues all around us. The economy appears to be on the mend, (depending on the economist, and the reports released on any particular day) but the recovery is slow. The jobs market is still grappling with stubbornly high unemployment, as evidenced by Friday’s jobs report. Some 131,000 jobs nationwide were cut last month, though that was primarily tied to layoffs of temporary census workers. The unemployment rate remained unchanged at 9.5 percent.

Overly negative news media reports haven’t helped the housing market. The press seems to focus primarily on the negative and ignore the overall improvement we’re seeing – the fact that corporate earnings have rebounded significantly, home sales have steadily risen over 2008 and 2009 levels, the credit markets have grown stronger, and the stock market has recovered nicely from last March’s low, making most 401k’s quite a bit healthier. The grim tone of the financial press may be frightening some potential buyers into inaction.

Nonetheless, there are still savvy buyers out in the market. They understand that while we have economic challenges and uncertainty, things have indeed gotten better. And they know that we’re seeing a rare window of opportunity right now with homes priced at very attractive levels and mortgage money available at rates we haven’t seen since…ever. Mortgage rates hit a fresh record low this week with 30-year fixed-rate mortgages averaging 4.49%, according to Freddie Mac. Those who are buying now realize the strong, long-term investment potential of real estate, especially in the Bay Area at today’s price level.

Call me today and let us talk about your real estate situation. 408 399 1495

Who is the #1 Real Estate Company now?

2010-07-13T10:39:00.001-07:00

Did you know that Coldwell Banker in Los Gatos is the leader of the market share for homes in Santa Clara County over $1,000,000??

Our overall market share in Santa Clara County is also the highest!

Time to call me today and let me help you with your biggest investment ever.

Trust Monica Manocha & Coldwell Banker to help you with your real estate needs.
408 399 1495

Pricing your home today...

2010-05-11T10:16:00.000-07:00

"In today’s market, the key for sellers is to price their home “at market” or even slightly below. You need to remember that buyers today are taking on the risk of a slowing mar-ket in their offering price.
If your home is not selling, you might wonder how long you should wait to reduce your list price. The answer to this is this simple: as soon as the market response (lots of showing, but no offers) tells you your price is too high.
In a transitional market, the “right” price can also be tricky. Buyers tend to be cautious and tentative about their home buying decisions. It is never wise to “test the mar-ket” in this kind of market environment.
An effective pricing strategy can be to undercut your competition. So, for example, if a neighboring home is listed at $535,000, bring yours in at under $535,000 at say $529,000.
Also consider psychological price barriers. Buyers perceive a huge difference between a home listed at $500,000 and one at $495,000.
Aggressive pricing or a quick price reduction can some-times stimulate multiple offers. We know of one home recently that was priced by the sellers $25,000 below any-one else. The result - 7 offers and it sold over listed price by $50,000.
So think carefully before you set your price. Remember, if you are purchasing another home you become a buyer, too, and will get the benefit of this market on that side of your transaction.
So price your home to sell. After all, that is why you put your home on the market in the first place!

Also, as a part of our Bay Area Concierge Services we offer expert real estate services to you, your friends and family. Visit us online at www.mmgproperties.com or call us at 408.399.1495."

Bay Area Real Estate Update.

2010-04-28T07:44:00.000-07:00

Here is some valuable information about the Real Estate market in Santa Clara County. As you can see there is a lot of activity in our area and the information points in the better direction for sales price, etc.

March Property sales were 961, up 26.0% from 763

in March of 2009 and 46.3% higher than the 657

sales last month. March 2010 sales were at their

highest level compared to March of 2009 and 2008.

March YTD sales of 2,237 are running 12.1% ahead

of last year's year-to-date sales of 1,996.

The Median Sales Price in March was $590,000, up

31.1% from $450,000 in March of 2009 and up

7.3% from $550,000 last month. The Average Sales

Price in March was $737,017, up 22.1% from

$603,762 in March of 2009 and up 4.3% from

$706,723 last month. March 2010 ASP was at a mid

range compared to March of 2009 and 2008.

Also, as a part of our Bay Area Concierge Services we offer expert real estate services to you, your friends and family. Visit us online at www.mmgproperties.com or call us at 408.399.1495.

A Great 3/2.5 in Santa Clara for less than $600k

2010-04-27T22:37:00.000-07:00

$585000 / 3br - 3/2.5 Over 1700 sqft. Must See!! (santa clara) (map)

Date: 2010-04-27, 9:20PM PDT
Reply to: monica.manocha@gmail.com ^{[Errors when replying to ads?]}

2414 Ruth Cabral Way, Santa Clara, CA 95050 (Santa Clara)

You have to see this!! Get in contract today before the tax credit deadline on Friday!!!!

This is a REGULAR sale and move in condition... Hurry and make this your home today!!

Lots of light . Great multi level townhome.

Attached 2 car garage, vaulted ceilings and a great open floorplan!

$585,000 3 beds, 2&1/2 baths, 1768 sq ft

www.monicamanocha.com

Status: Active

Year Built: 1987

Type: Townhouse

List Date: 4/5/2010

Parking: 2

MLS#: 81016228

2414 Ruth Cabral Way (google map) (yahoo map)

TAX CREDIT DEADLINE

2010-04-27T22:34:00.001-07:00

The time to get into contract and get your tax credit is almost coming up. Time to find a home and get in contract before Friday.

Call me today and let's talk about the homes you have been deciding between.

www.mmgproperties.com

408 399 1495

State homebuyer tax credit news!!!

2010-03-29T16:53:00.000-07:00

http://www.contracostatimes.com/real-estate/ci_14317708?source=rss&nclick_check=1

Let's talk real estate and how it will help you.

Time to sell your home...? This is the right time...

2010-02-26T09:16:00.000-08:00

http://abcnews.go.com/GMA/YourMoney/selling-house-real-estate-market/story?id=9948405

I can help you get the right price for your home.
Let's talk about Real Estate and you..

Monica
408 399 1495

Prices are now on the rise in Silicon Valley?

2010-02-22T10:19:00.000-08:00

The market has totally changed in the last one year. We are now seeing a solid recovery in the financial market and the federal home buyer tax credit is a big help to many.

It is obvious that the housing market is not out of the woods yet, but there is a dynamic army of confident and qualified buyers searching for homes.

There is still an inventory shortage in many areas, but it does also result in multiple offers, making sellers very happy.

Even though sales may have fallen, the home prices are on the rise.

It is a rare market that we are in with a search for more inventory but also a great tax credit for home buyers.

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

www.mmgproperties.com

408 399 1495

The latest on Bay Area Home Sales

2010-02-19T12:10:00.000-08:00

http://dqnews.com/Articles/2010/News/California/Bay-Area/RRBay100218.aspx

COMING SOON: $368,999 for a 3/2 in Santa Clara with plenty of upgrades..

2010-02-09T10:23:00.000-08:00

We have our newest home coming up @ Park Place and would like you to know first.
This 3 bedroom 2 bath home is located on the first floor and is the only one with a backyard.
Upgrades galore
Inside laundry
Granite slab counters
Stainless steel appliances
LOW HOA DUES!!!

www.condosatparkplace.com

Call today to schedule a private showing of your new home.

408 399 1495

Bay Area Real Estate Deadlines/Dates

2010-01-26T11:38:00.000-08:00

For all homebuyers keep in mind these two dates:

1)Must be in contract for a home by April 30th, 2010
and
2)The escrow must close by June 30th, 2010

Finally, all buyers get tax credit:
It is not only the 1st time homebuyers that get tax credit ($8000) and so this would be a good time to move up and get some tax credit ($6500)

Call me today to talk about your personal situation in Real Estate.
408 399 1495
www.mmgproperties.com

More News about Real Estate in the Bay Area...

2010-01-22T10:39:00.000-08:00

http://online.wsj.com/article/SB10001424052748703657604575005491246452922.html?mod=WSJ_newsreel_sanfran

Let's ralk about your real estate needs..
Monica
408 399 1495

Silcon Valley Housing Market News!!

2010-01-22T10:25:00.000-08:00

An article worth reading about our housing market.
http://www.mercurynews.com/news/ci_14239079?nclick_check=1

Let me know how I can further help you our your friends and family with their real estate needs.
Monica
408 399 1495

Did the Real Estate Market Hit Rockbottom??

2010-01-20T19:21:00.000-08:00

http://www.cnbc.com/id/34330547/?slide=1

Check it out..

Time to snag a Bay Area bargain??

2010-01-06T12:43:00.000-08:00

Happy New Year to all!!
I thought you would find this helpful.

http://www.msnbc.msn.com/id/21134540/vp/34724700#34724700

Call me today to talk about your options.
408 399 1495
Monica

Do you know about your personal situation in real estate?

2009-09-18T11:28:00.000-07:00

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

3 year housing price descent is at the end...

2009-07-30T22:03:00.000-07:00

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

A Tax Credit for 1st time Homebuyers?

2009-07-27T22:00:00.000-07:00

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

Bay Area Home Sales on the Rise!!

2009-07-23T12:12:00.001-07:00

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.

Bay Area Real Estate Bubble?

2009-06-03T10:47:00.000-07:00

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

Real Estate in the Bay May 2009

2009-05-30T20:25:00.000-07:00

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=842 http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/05/28/financial/f110028D09.DTL&hw=real+estate&sn=003&sc=766 http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/05/28/BUJT17S3B2.DTL&hw=real+estate&sn=008&sc=607 http://sanjose.bizjournals.com/sanjose/stories/2009/05/25/daily47.html

Tax Credits for CA Homebuyers

2009-03-03T10:39:00.000-08:00

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

New confidence with the real estate maket?

2009-02-20T12:20:00.000-08:00

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 Passed... Now What?

2009-02-17T10:12:00.000-08:00

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

Short Sales are the Talk of the Bay Area Now....

2009-02-11T08:23:00.000-08:00

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

Real Estate in the Bay After the 44th...

2009-01-23T13:39:00.000-08:00

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.

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

Real Estate in the Bay Area 2009

2009-01-16T11:05:00.000-08:00

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

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

2008-12-08T10:42:00.000-08:00

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?

2008-11-25T10:22:00.000-08:00

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

2008-11-17T19:30:00.000-08:00

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

2008-11-11T15:11:00.000-08:00

“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

2008-10-31T16:06:00.001-07:00

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!

2008-10-24T11:28:00.000-07:00

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?

2008-10-21T13:54:00.000-07:00

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!!

2008-10-06T16:48:00.000-07:00

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

2008-09-23T14:08:00.001-07:00

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

2008-09-12T12:10:00.000-07:00

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

2008-09-08T11:16:00.000-07:00

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

2008-07-15T21:36:00.000-07:00

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

2008-06-19T12:07:00.000-07:00

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?

2008-06-04T11:49:00.000-07:00

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!

2008-05-16T14:01:00.000-07:00

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

2008-05-08T21:29:00.001-07:00

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...

2008-05-08T21:24:00.000-07:00

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?

2008-05-05T09:02:00.000-07:00

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.

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

Email me @ monica.manocha@cbnorcal.com with any questions you may have.

www.mmgproperties.com

Tips for existing sellers...

2008-04-28T12:11:00.000-07:00

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?

2008-04-23T10:57:00.000-07:00

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?

2008-04-22T13:20:00.000-07:00

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

www.mmgproperties.com

5 Signs of a Housing Market Pickup

2008-04-17T10:17:00.000-07:00

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!

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

What is PMI?

2008-04-17T09:59:00.000-07:00

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
www.mmgproperties.com

Overnight Drop in Real Estate Rates

2008-04-07T13:29:00.000-07:00

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?

2008-04-01T14:05:00.000-07:00

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..

2008-04-01T13:48:00.000-07:00

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!!

2008-04-01T12:38:00.000-07:00

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...

2008-03-22T11:52:00.000-07:00

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!

Call us @ 408 399 1495 today or email us @ monica.manocha@cbnorcal.com

Make it a great weekend!

www.mmgproperties.com

Is this the time to buy now?

2008-03-19T10:21:00.000-07:00

Today's Housing Market Primed to Buy
Wednesday, March 12, 2008 -

SACRAMENTO, CA - Serious homebuyers and investors take note: Don't fret recession talk and dismal foreclosure and mortgage delinquency numbers coming from the experts.

"Today's market could be the opportunity of the decade -- and even decades to come -- for the average person to pick up affordable housing at cut-rate prices," says Alexis McGee, president of and co-founder of ForeclosureS.com, California-based foreclosure and property information analysts and publishers. "Homes today are available at discounts of 20, 30, and 40 percent off retail prices in some areas; choices are abundant, and inexpensive, reliable financing is now available, thanks to new higher Federal Housing Administration and Fannie Mae loan limits," adds McGee.

Even the Mortgage Bankers Association on March 6th reported record mortgage delinquency and foreclosure rates points to a slowing foreclosure spiral. However, new foreclosure starts year over year and quarter to quarter were relatively flat in Michigan, Ohio, and Indiana, states with the highest percentages of loans in foreclosures.

Could the downturn have hit bottom? "That's anyone's guess," says McGee. "But clearly our government has taken essential steps to allow the market to recover in a way that stimulates the economy, keeps interest rates affordable, and helps buyers, sellers, and investors, alike." For example:

-- Last week Senate Republicans blocked consideration of the "Bankruptcy Cram Down" bill that would have allowed bankruptcy judges to modify the mortgages of troubled borrowers to help them avoid foreclosure. "Cram down would have undermined investor confidence in secondary markets where mortgages are bought and sold, resulting in higher interest rates and larger down-payment requirements," adds McGee.

-- The temporary increase in loan ceilings for FHA-insured loans and Fannie Mae loans mean the average person now can access affordable, safe insured loans. "Until now, homebuyers in high cost of living areas had been priced out and forced to look to creative expensive mortgage financing options," adds McGee.

-- U.S. District Judge Paul L. Friedman filed a preliminary injunction temporarily barring HUD from enforcing a ban on seller-financed down payment assistance programs. That injunction gives investors another tool to sell houses in today's market and ensures the continuing operation of nonprofits like nehemiahcorp.org to help with down payment assistance for families.

"But for others already trapped by soaring mortgage payments and looming foreclosure, it's not enough. Despite talk that the number of overextended homeowners helped by lender workouts is up, so are serious mortgage delinquencies and foreclosures. Industry claims aside, homeowners facing foreclosure simply aren't getting the workout assistance they need from lenders and industry," adds Bruce Marks, chief executive of Boston-based Neighborhood Assistance Corporation of America, a nonprofit foreclosure prevention counseling group.

"Hopefully, that will change as interest rates continue dropping and home prices rebound as expected later this year," adds McGee.

Call Monica Manocha today @ 408 399 1495 to help you with buying your home in this great market.
Email me @ monica.manocha@cbnorcal.com

Monica Manocha Re, CMRS
The Malcolm & Manocha Group
Realtor- Coldwell Banker
www.mmgproperties.com
408 399 1495

"10 things to know about Silicon Valley real estate -right now!"

2008-03-07T10:49:00.000-08:00

Thousands of Silicon Valley residents are crouched on the sidelines of the housing market, watching and wondering when to make a purchase or put a home up for sale.
And they've got questions: When will we hit bottom? Can prices in Cupertino keep going up? When will the mortgage market stabilize? To help, here is the Mercury News' list of Top 10 Things to Know Right Now:
Some "micro-markets" are still hot, others very chilly.
Some houses in places like Saratoga, Cupertino and Los Altos are still selling with multiple offers for more than their asking prices, and few homes are for sale. Frenzied competition is reserved for homes in desirable school districts that are in good condition. Almaden Valley is pretty hot, too.
Yet other parts of the county, including the East Side and South County, have an enormous supply of homes for sale. Some neighborhoods' values are being depressed by many bank-repossessed properties and "short sales," in which owners try to sell for less than they owe their lenders, typically to avoid foreclosure. But some buyers are beginning to snap up bank-repossessed properties whose values have fallen about 40 percent from their peak.
Getting a loan can be an ordeal.
Lenders are lending. But they require more documentation, higher credit scores for the best interest rates, and sometimes more than one appraisal on a property. They frequently alter their guidelines about which loans they will fund, sometimes leaving buyers temporarily jilted. Start the loan process early; approach it with patience.
The "conforming loan limit" has not increased yet.
Within the next month or so, mortgage financing companies Fannie Mae and Freddie Mac will be able to back bigger loans, thanks to the recent economic stimulus bill. That may result in lower interest rates for local buyers and owners whose loans are less than $729,750, and it may spur more home purchases.
Many lenders have declared Santa Clara County a "declining market."
Most lenders require borrowers to have bigger down payments to qualify for loans than in the past. Lenders don't want to loan you 90 percent of your home's value if they think its value is declining. They fear if the value keeps dropping, you'll default and leave them with yet another repo on their books.
Even refinancing takes longer now.
Cutbacks at banks and escrow companies mean there are fewer people to speed along your loan. Approvals that used to take 48 hours now can take five or six days, some mortgage brokers say.
There are deals to be had.
Even in the few hot markets, you can find good values on properties that aren't picture-perfect. Most buyers these days want "move-in" condition. Buyers willing to clean and repair can save money. Some bank-owned properties are bargains, but not all. Banks want to get what they think is "market value," and may be slow to recognize if value has fallen. They can also be slow to accept offers.
Buying a "short sale" home can be a pain.
Getting approval from the lender to buy a home for less than the owner still owes on his mortgage can take weeks or months. In the midst of the process, the lender on the owner's first or second mortgage may decide to foreclose after all, scuttling your purchase. Patience - and an experienced real estate agent - is required.
Buying at an auction doesn't guarantee a bargain.
Big auctions can breed excitement, and excitement makes people bid higher. Inspect the property first, determine what it's worth, and don't bid more than that.
Most "move-up" buyers today should sell before they buy.
It's hard to know how much you'll make on your home until you've received a purchase offer from a buyer who has locked in a loan. So it's probably unwise to make an offer on a new home unless you're paying in cash, or you make an offer that's contingent on the sale of your existing house. You can try to get a "bridge" loan allowing you to pay the mortgage on both homes for a time, but rates are high and criteria stringent.
There's help for first-time buyers.
Non-profit organizations and government programs can help even those with small down payment savings, and timing is good because entry-level prices are dropping. For programs that may help, visit the California Housing Finance Agency at www.calhfa.ca.gov, Neighborhood Housing Services at http://www.nhssv.org/ or South County Housing at http://www.scounty.com/.

We hope you found this information valuable and we look forward to helping you with your real estate needs and referrals.

Call us @ 408 399 1495 or email me @ monica.manocha@cbnorcal.com and let’s talk.

Real Estate Rates Slip

2008-02-28T14:22:00.000-08:00

Real estate rates slip overnight
30-year fixed rate at 6.05%; 10-year Treasury yield at 3.85%
Thursday, February 28, 2008

Long-term mortgage interest rates came down Wednesday, and the benchmark 10-year Treasury bond yield was down at 3.85 percent.

The 30-year fixed-rate average fell to 6.05 percent, and the 15-year fixed rate declined to 5.48 percent. The 1-year adjustable rate dipped to 4.87 percent.
The 30-year Treasury bond yield sank to 4.65 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 gained 9.36 points, or 0.07 percent, finishing at 12,694.28. The Nasdaq was up 8.79 points, or 0.37 percent, closing at 2,353.78.
Stock figures are current as of 7:30 p.m. Eastern Standard Time.

Call us @ 408 399 1495 and let's help you take advantage of this market!
Email us @ monica.manocha@cbnorcal.com and let's get started...

The Malcolm & Manocha Group
www.mmgproperties.com

A Great Opportunity in the Irvington District!!

2008-02-26T10:04:00.000-08:00

We Proudly Present …
4271 CAROL AVE, FREMONT
The Best Deal in the Irvington Area!! Hurry!!

This Gorgeous Contemporary Style Corner Lot Home Features the Following:

Approx 1251 sqft of living space
Approx 6600 sqft lot great for the kids & entertaining
3 spacious bedrooms
2 updated bathrooms
Beautifully updated kitchen
Newer windows
Window coverings
Newer landscaping
Newer electric
New furnace
2 Car Attached garage
Fremont Union School District (Hirsch Elementary, Horner Middle & Irvington High School)

This home is just waiting for you to move right it and start entertaining…

Hurry this home won’t be on the market too long!!!!

Offered @ $565,000

(Lowest price home in the neighborhood. Hurry!!)

(This is a short sale.) Call 408 399 1495 to schedule an appointment today!

The Malcolm & Manocha Group

Brian Malcolm & Monica Manocha

"A Team That Works"

http://www.mmgproperties.om/

Is a Pre Listing Inspection worth it?

2008-02-20T17:14:00.000-08:00

Pre-listing inspections increasingly are being used to give our listings a competitive edge, although it may be difficult to get sellers on board when they insist that inspections are the responsibility of the buyer.
However, there are numerous benefits to using pre-listing inspections on a regular basis. If sellers know about flaws and repair needs ahead of time, they can remedy them in a time frame that is less hectic than when problems arise out of buyer’s inspections.
Additionally, when sellers provide inspection reports to buyers before offers are made, it creates an atmosphere of honesty and trust and decreases the likelihood that deals will fall through after the buyer’s inspection.
Pre-listing inspections allow us to market the homes as “Certified Pre-Owned;” and homebuyers, like those purchasing new cars, are willing to spend more money on properties that have been professionally inspected.

Call us today @408 399 1495 or email me @ monica.manocha@cbnorcal.com
to get the pre listing inspections on your home.

Please call us today so we may help you further.
Brian Malcolm & Monica Manocha Re, CMRS
The Malcolm & Manocha Group
www.mmgproperties.com
Direct: 408 399 1495 or Cell: 408 930 5623

Why isn't your home selling?

2008-02-20T16:05:00.000-08:00

Whether it’s a buyers market or a sellers market, there’s always a reason a home is NOT selling. There are three major elements to consider. 1. Location. 2. Condition. 3. Price. If any of these three major areas are neglected, the market value or the resale value of your home may be in question and it will most likely be very difficult to sell your home.

Let’s take a closer look at each of these elements. When it comes to location here are just a few things that may make a difference. Does the home sit near an airport, freeway or railroad tracks. What is the crime rate in the area? Or does your home sit on a quiet tree lined street, close to parks, recreation, schools and shopping? It’s been said before and I’ll say it again … location, location, location.

What is the condition of the home? Is it the best house on the block or the worst? Are there many things to be fixed, updated or replaced? Do you have a unique style (that you love) but may not appeal to the masses? These things can be deal breakers. If your home is a “Fixer Upper“, the third element is crucial (Next paragraph). As a professional Realtor and Home Stager, I’ve found if you neutralize the home, most can then see the potential. Don’t be afraid to hire a staging professional to help you make your home looks its absolute best. Staging works! Whether you’re currently living in your home or if it’s empty … Staging works! At the very least, get a “Staging Consultation”. You never know if the potential buyer is looking for a home to fix up and “put their stamp on” or if they are looking for move in ready… either way, I believe you’ll find a Staging Consultation to be most beneficial.

Be sure your home comes on the market at the right price. It’s important to look at comparable homes in your area. Add value for upgrades or features in your home and decrease value for elements that are less desirable. It’s difficult for most to place a value on their own home; after all, you purchased this home because you loved it … someone else must feel the same way … right? This is where having a good Realtor comes into play. A good Realtor, like myself, understands what buyers are looking for and what they typically do not want to see and will price your home at its best current value.

I’ve only mentioned a few things that can make a difference in whether or not your home sells quickly or at all. Call us today and lets talk about why YOUR home isn't selling. Let Brian and I come and look at your house in more detail.

Call 408 399 1495 and schedule a time with us.

Visit us @ http://www.mmgproperties.com/ to contact us and talk in person.
Brian Malcolm & Monica Manocha Re, CMRS
The Malcolm & Manocha Group
http://www.mmgproperties.com/
Direct: 408 399 1495 or Cell: 408 930 5623

Is now a good time to buy a home in the San Francisco Bay Area?

2008-02-20T15:20:00.000-08:00

Nowadays we hear, “It is not a good time to buy real estate” … then we hear “It IS a good time to buy real estate!” So which is it? You could ask 100 different people and you’d get 100 different answers.

The real quesstion is … “Is it a good time for YOU to buy a home?
Before you decide to shop for a new home ask yourself a few questions. For example: Why are you buying a home? Are you a first time home buyer? Looking to upgrade? How long do you plan to live there? What interest rate do you qualify for? Is it a fixed or variable rate? How much are you planning to put down? How much income do you earn? Are you living alone or sharing expenses? What are the many tax benefits? These are just a few questions you should ask yourself.

Do your homework. Buying a home is probably the biggest and most important decision you’ll ever make, so make sure that all of your answers are in your favor.
Buying a home in the San Francisco Bay Area can cost a lot more money than in other parts of the county, but typically the return on investment is also a lot more.

Depending on your circimstance, now may be a great time to buy! Why? Because …
Reason #1: Home prices lower than they’re been in long time!
Reason #2: Mortgage rates lower than they’ve been in years!
Reason #3: This is a Buyer’s Market!
Reason #4: Because it’s a Buyers Market, usually you can take a little more time to make a decision.
Reason #5: Plus you typically do not have to worry about bidding wars in a Buyers Market.
Reason #6: Prices are more likely to be negotiable in a Buyers Market.
Reason #7: With a home as a right-off, you’ll most likely pay less in taxes.
Reason #8: If you’re currently renting, you’ll be able to decorate or renovate YOUR home any way you like.
Reason #9: Appreciation! Although real estate moves in cycles, sometimes up and sometimes down, over the years real estate and consistently appreciated.
Reason #10: We are available to assit you in finding and purchasing the place you’re looking to call home.

Call us today so we may get started in helping you with your real estate needs!

Don't wait another minute... email me now @ monica.manocha@cbnorcal.com

Brian Malcolm & Monica Manocha Re, CMRS

The Malcolm & Manocha Group

http://www.mmgproperties.com/

Direct: 408 399 1495 or Cell: 408 930 5623

Paint Color Tips & Tricks

2008-02-20T15:16:00.000-08:00

Here are 3 useful tips I use...

1. Most of the local hardware/big box stores carry poster sized pieces of wallboard and sample boards (about the size of a piece of paper). These are GREAT tools to have if you are unsure about your color choice. Buy samples of the paint you’re considering and paint on the boards. You can move these all around the room and you won’t have paint patches all over your walls. Be sure to place the board on each wall because the color will look different on every wall depending on the lighting.
2. Now that you’ve selected the right color, you have one more choice to make. Which sheen do you want? Ah geez! Another decision. Flat, Eggshell, Satin, Semi-Gloss or Gloss? (These are in order from flat to one with the most shine for Kelly Moore paints). Here’s a tip. The higher the shine the more washable the paint/wall. However, the higher the sheen the easier it is to see imperfections in the wall. Nowadays, I find the most popular sheen is Eggshell. It give you a little wash-ability without being over shiny. However, if you’re painting a wet area (bathroom/kitchen) most people use a semi-gloss.
3. How to get a perfect seam. Sometimes you’ll find that you’ll need a perfect seam in between paints. Maybe it’s a rounded corner or a transition from one room to another where two different paint colors meet. Here’s the tip. Start by making a line with painters tape. Then (and this is the most important part) apply a clear acrylic - matt finish to the seam of the tape and let dry. This seals the tape to the wall so your new paint color won’t seep under the edge of the tape. Paint your walls and remove the tape to find a perfect paint line.

Now your home looks ready to go!

Call us today so we may help you with your real estate needs.

Brian Malcolm & Monica Manocha Re, CMRS
The Malcolm & Manocha Group
http://www.mmgproperties.com/
Direct: 408 399 1495 or Cell: 408 930 5623

President Approves Stimulus Package

2008-02-14T10:40:00.000-08:00

It’s finally official! The President has signed the economic stimulus package, which, among other things, includes a temporary increase of the conforming loan from $417,000 to as high as $729,750* and a temporary increase of the FHA loan from $362,750 to $729,750* through December 31, 2008.

With the passage of the stimulus package, people may now obtain less expensive loans, thus reducing their monthly payment, improving homeownership affordability and increasing buyers’ purchasing power. Now couldn’t be a better time for Northern California real estate.
NAR is projecting that this package may result in as many as 500,000 refinanced loans and could help reduce foreclosures by as many as 210,000.

In addition, the national organization reported:
• That over 300,000 home sales could be generated thus reducing housing inventory and home prices could be strengthened by two to three percentage points.• Nearly half a million people with higher priced jumbo loans may be able to refinance to conforming loans under the provisions of the bill, saving these people approximately $270 to $410 a month, according to NAR estimates.

Call us today so we may get started with your real estate needs.

Brian Malcolm & Monica Manocha Re, CMRS

The Malcolm & Manocha Group

http://www.mmgproperties.com/

Direct: 408 399 1495 or Cell: 408 930 5623

Hot Market: The Way to San Jose Looks Bright

2008-02-04T20:42:00.000-08:00

San Jose, California, is on its way to a brighter economic picture, according to the city's latest Economic Center Report. Job growth rose through 2007 and commercial real estate vacancy has dropped by nearly a third, creating opportunity for those selling and buying in the nation's 10th largest city.
The average price of a home in the San Jose area, which includes Sunnyvale and Santa Clara, stands at $852,000. That figure is up more than 9 percent from the same reporting period last year and up 22 percent since 2004.
The job growth in the Silicon Valley Capital city creates competition for office space, as well. The vacancy rate in that category dropped 30 percent in the last year.
Paul Krutko, chief development officer for the city, says in a press release at the city's website, "Demand for housing will continue to be a challenge as San Jose continues to rebound from the effects of the dot com years." Housing statistics bear that out, with residential rental vacancy rates at a 7-year low.
San Jose Mercury News quotes John Sloven, director of the Stanford Institute for Economic Policy Research, saying, "Silicon Valley is in better shape than the overall U.S. economy. My overall assessment is the Silicon Valley economy is going to come through this pretty well unscathed."

Call us today so we may get started.

Brian Malcolm & Monica Manocha Re, CMRSThe Malcolm & Manocha Grouphttp://www.mmgproperties.com/Direct: 408 399 1495 or Cell: 408 930 5623

Buying a Foreclosed Home?

2008-01-30T23:24:00.000-08:00

Look before you leap into buying a foreclosed property
That house may look like a steal, but it could be an ordeal

You could go broke saving money. That was one of my father's favorite admonitions, which I'd hear after bringing home a bagful of bargains that I found at a sale.
Now my dad's wise words come to mind when I hear people say they're thinking about buying foreclosed homes.
You could go broke saving money on foreclosures if you assume the prices are low enough to make them genuine bargains. And you could go broke if you don't have a well-thought-out (and priced-out) plan for rehabbing the house, if necessary.
Banks don't want to give away foreclosed properties, of course. They don't want to put more money into them to make them attractive to buyers, either.
In some cases, it will take quite a bit of money to make a foreclosed home fit for habitation. Homeowners struggling to make their mortgage payments don't spend money on maintenance. Some enact their own scorched-earth policy before they lose the house to the bank. They may sell valuable appliances and fixtures or even vandalize the home. A home left unoccupied can be taken over by mold, insects or animals.
Before such homes are listed for sale with a real estate agent, they can sit empty for weeks while the lender that foreclosed sorts through claims from other lien holders and makes sure the title is clear.
Some of the other bank-owned properties may appear to be in decent condition, at least superficially. Some of them have sloppy, garish interior paint that proved why "builder beige" is such a practical choice for walls and carpet in a home that's for sale.
If you plan to purchase a foreclosed property, we suggest to always insist on a professional inspection. Banks typically won't lower their price in response to the inspector's report, but you need to know whether a house that has been vacant for months has heating, plumbing and electrical systems that can come back to life once your name is on the deed, or how much it will cost if they don't.
We also suggest to not buy a foreclosed home without taking the optional title insurance policy. That would protect your investment if old liens, such as those from unpaid contractors, appear after closing. As part of your negotiations, we always suggest to ask the bank to pick up the cost of your policy.
Finally, be prepared to wait. This can be a long process!

Visit us @ www.mmgproperties.com to contact us and talk in person.

Brian Malcolm & Monica Manocha Re, CMRS

The Malcolm & Manocha Group

http://www.mmgproperties.com/

Direct: 408 399 1495 or Cell: 408 930 5623

The Importance of Pre Approval

2008-01-29T16:22:00.000-08:00

Why Get Pre-Approved?

The first thing you need to do is get pre-approved. This is different from Pre-qualifying, as it is a full loan approval instead of simply an opinion letter. It is best that you take this step before looking at homes. Finding out what you qualify for will help you look in the right price range. You would be disappointed if you found a home you liked and then found you couldn't qualify for it. By the same token you may be able to look at more expensive homes than you originally thought possible. Getting pre-approved will help you in the following ways:

Determine How Much Home You Can AffordPrinceton Capital can determine your purchasing power, which gives you a guideline as to how much home you can afford – before you start looking. We will gladly show you a variety of different types of financing (Fixed Rate, Adjustable, Interest Only, and 100% Financing), and will determine how much you qualify for with each of those types. Based on your desired payment level and type of financing with which you feel comfortable, we can determine your purchasing power.

Know What Your Down Payment Will Be and Provide Financing OptionsYou need to choose a home based on how much money you have available. Based on the funds you have available, we will help you design a loan that will work for your individual situation.

You Should Know What Your Monthly Payment Will BeBefore picking a price range, you should make sure that you can handle your total monthly payment: Principal, Interest, Taxes, Insurance (Mortgage Insurance and HOA dues, if necessary). Turns You Into a Cash BuyerIn today's market, buyers are not the only parties concerned about financing. Sellers are equally concerned. In cases where there are multiple offers for homes, the buyers must put themselves in the best possible position to have their offers accepted. Getting pre-approved also puts the buyer into a better negotiating position, as the seller knows the buyer is ready, willing, and able to buy, and the financing is not in question. Those buyers who are not pre-approved will have less chance of obtaining an accepted offer on the house they wish to buy, and are therefore at a disadvantage.

Call us now and allow us to help you get Pre Approved Today!!

Brian Malcolm & Monica Manocha Re, CMRS
The Malcolm & Manocha Group
http://www.mmgproperties.com/
Direct: 408 399 1495 or Cell: 408 930 5623

30-year rates lowest since '04

2008-01-27T18:27:00.000-08:00

Rates on 30-year mortgages dropped for a fourth straight week to the lowest level in almost four years, raising hopes that low rates will help spur a rebound in the hard-hit housing industry.
Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 5.48 percent last week, down from 5.69 percent the previous week.
It was the fourth consecutive decline and the third straight week that rates have been below the 6 percent level. The new rate marked the lowest point for 30-year mortgages since they averaged 5.40 percent the week of March 25, 2004.
Economists attributed the decline to further weak news on the economy, combined with the biggest reduction of a key interest rate by the Federal Reserve in more than 20 years, a move that has raised hopes the Fed will be making more rate cuts as it steps up its efforts to combat a threatened economic recession.
Other types of mortgages also showed declines last week. Rates on 15-year mortgages, a popular choice for refinancing, dropped to 4.95 percent from 5.21 percent last week. Rates on five-year adjustable-rate mortgages declined to 5.13 percent from 5.40 percent, while rates on one-year ARMs fell to 4.99 percent from 5.26 percent.

In conclusion all we can say is hurry and call us today so we can help you take advantage of this great financial market.

Brian Malcolm & Monica Manocha Re, CMRS
The Malcolm & Manocha Group
http://www.mmgproperties.com/
Direct: 408 399 1495 or Cell: 408 930 5623

What to look for when buying a home?

2008-01-23T19:41:00.000-08:00

Things to Think About When Home Shopping

While the property inspector will do a thorough, professional inspection of your new home, it is a good idea for you to check a few things yourself when considering a home purchase. Some general considerations we suggest include:
Age
Ceiling
Height
Waste Disposal
Floor Plan
General Appearance
Wiring
Square Footage
Heating System
Insulation
Traffic Pattern
Air Conditioning
Number of Entrances
Stair Width
Plumbing
Basement
Hall Width
Water Supply
Attic

You should always check and inspect these items, room by room, when considering your purchase.
Try all lights and switches
Turn all faucets on and off
Flush the toilets
Turn on furnace & air conditioner
Test all stove burners
Turn the oven on bake & broil
Run the dishwasher
Open and close all windows and doors
All other operating systems

We also suggest you need to make some notes on these interior features. Record important details and note anything that needs changing, repair, or special maintenance. You'll avoid costly repairs by making this extra effort.

In addition, make sure the inspector investigates any signs of structural or water damage (such as wall cracks, moisture, etc.). When you actually buy the home, we suggest you should do a walk-through with us several days before closing to determine if all the conditions in your sales contract have been met.

However, the time to inspect and note any defects you want corrected by the seller is during the contract inspection period or prior to signing the contract. Any repair or replacement items should be noted in the contract with any questions or concerns you might have.

Please call us today so we may help you further.
Brian Malcolm & Monica Manocha Re, CMRS
The Malcolm & Manocha Group
www.mmgproperties.com
Direct: 408 399 1495 or Cell: 408 930 5623

What do your Realtors do for you?

2008-01-23T14:33:00.000-08:00

Your Real Estate Professionals : The Malcolm & Manocha Group

Congratulations! You have taken the first step towards owning your own home by choosing us as your professional real estate agents. You have made a very wise decision.
In using the services of a Realtor to guide you through the challenging home buying process, you can be assured that you will receive the best service with much less hassle and anxiety.

We will:
Help you determine your wants and needs in order to find the perfect match between the home that best meets your needs and your budget.
Keep your personal tastes and lifestyle in mind when selecting properties to visit.
Find the properties for sale in your preferred area through the multiple listing service and their own resources. Newspaper ads and "For Sale" signs are not always a true reflection of all properties on the market. We always knows what's available at any given time, including properties which will be in the market soon.
Allow you to make your own decision. The Malcolm & Manocha Group work for you and respects your opinion. We will not try to force you into a decision you don't feel comfortable with. Protect your rights. Real estate laws have become increasingly complicated and we are there to assist and protect you in every way.
Negotiate for you. Once you've found the home you want to buy, The Malcolm & Manocha Group will write up your offer and present it to the seller. This gives you the best opportunity to have your contract accepted.

Please call us today so we may get started.
Brian Malcolm & Monica Manocha Re, CMRS
The Malcolm & Manocha Group
www.mmgproperties.com
Direct: 408 399 1495 or Cell: 408 930 5623

10 Ways to Repair Credit & Boost Scores

2008-01-23T10:34:00.000-08:00

Top 10 ways to repair credit, boost score
Why pay for help when you can do it for free?

When it comes to repairing your credit, you're the best person for the job.
Credit repair scam artists will charge you anywhere from $500 to $1,500 or more upfront, and promise you everything from a new Social Security card to perfect credit.
But these companies can't do anything for you that you can't do for yourself -- for free -- and they might ultimately do more harm than good.
What should you do if you have bad credit? Here are 10 tips that are designed to improve your credit history and raise your credit score:

1. Pull a copy of your credit history from AnnualCreditReport.com. Sponsored by the three credit-reporting bureaus, Equifax, Experian and TransUnion, AnnualCreditReport.com is the only place you can go to get a truly free copy of your credit history. Each credit-reporting bureau is required to give you one copy once a year. You should pull copies from each of the bureaus, since they sometimes collect different data.
2. While you're there, buy a copy of your credit score from Equifax.com. Equifax offers a FICO score, also known as a Beacon score, which is from Fair Isaac, the company that created the concept of credit scoring. Most creditors will pull a FICO score, so you should see what they're seeing. Your credit score will give you a snapshot of what your credit information means to your creditors. The FICO score runs from 350 to 850. The higher the number, the better. Your target should be to have a credit score of at least 720.
3. Check your credit history thoroughly. You're looking for errors, misinformation and negative information that might count against you. File a dispute with the three credit-reporting bureaus if you spot any errors. Some credit reports have serious errors in them, so fixing these will boost your score.
4. Understand what kind of debt you're facing. Make a list of everything you owe, the interest rate each debt carries, and the minimum payment due each month. Then, prioritize your debt: mortgage, real estate taxes, credit cards and medical bills should be paid in that order.
5. Negotiate with your creditors for a lower interest rate. Paying less in interest means more of your payment each month goes toward paying down your balance. If you have a good credit score (over 720 is a starting point), you should be able to find other credit cards featuring zero percent to 5 percent in interest for the first year, or for the life of a balance transfer (check out sites like CardRatings.com and CardTrak.com to compare credit-card offers.) Just be sure you read the fine print: Some credit cards require you to charge on the new account each month or face a stiff fee.
6. Pay down the debt with the highest interest rate first. Pay your mortgage and home equity loan and lines of credit in full each month. Then, make sure you have enough cash to make all of the minimum payments due on your debt each month. Then, throw any spare cash at the debt that carries the highest interest rate first. Once you've paid down that debt, transfer all of the extra cash you're paying each month to the debt with the next-highest interest rate, and so on.
7. Pay everything on time, even if you can make only the minimum payment. The most crucial component of your credit history and credit score is your ability to pay your bills on time each month. Paying on time shows your creditors that you take your debts and obligations seriously. Even one late payment can seriously damage your credit history and credit score, even though it can take a year's worth of on-time payments to start to heal your credit history and raise your credit score. It doesn't seem fair, but that's how the credit industry works.
8. Don't charge more than 25 percent of your maximum available credit limit. If you carry a credit-card balance that is a higher percentage of your available credit limit, your credit score will go down. Why? Because creditors believe if you charge the maximum on your credit cards, it means you can't properly manage your credit. You're better off spreading out your debt between three or four different cards than having it all piled on one card.
9. Don't open and close a lot of accounts. Again, a credit score tells current and future creditors how likely it is that you won't pay back your debts. It assesses how risky a borrower you are today. Every time you apply for a new credit card, that creditor pulls a copy of your credit history from the credit-reporting bureaus. That "inquiry" gets reported on your credit history. Too many inquiries in a short period of time signals that you may be getting low on your available credit and need more cash. Even though you might be interested in getting 10 percent off your first purchase for opening a new account, it looks different to a prospective creditor.
10. Don't share credit (except with a spouse). It's easy to tell someone that you'll "co-sign" a credit card, student loan or a mortgage loan application, especially if it's someone you've known for a long time. But it's also easy to wind up in a situation where that friend or relative stops paying his or her bills (for whatever reason) and your credit will take a big hit. Once you're a co-signer for a loan, you're legally obligated to make those payments -- whether or not you can afford them. So think carefully before you agree to co-sign a loan, and nip the problem of bad credit before it begins.

Please call us today so we may get started.

Brian Malcolm & Monica Manocha Re, CMRS

The Malcolm & Manocha Group

www.mmgproperties.com

Direct: 408 399 1495 or Cell: 408 930 5623

The Fed Cut Rates!!!

2008-01-22T19:24:00.000-08:00

Breaking News: The Fed Cuts Rates by Three Quarters of a Percent
What this may mean for you

The Federal Reserve slashed two key interest rates by three-quarters of a percentage point Tuesday following an unscheduled meeting, citing continued concerns about a weakening economy and turmoil in the financial markets.

So what does this mean for consumers?
The Federal Reserve lowered its federal funds rate to 3.5 percent from 4.25 percent, which impacts how much consumers pay on credit card debt, home equity lines of credit and auto loans,. This marked the biggest one-day rate move by the central bank since it cut its discount rate by a full percentage point in December 1991, a period when the country was struggling to get out of a recession.

The rate cut is designed to stimulate the economy, which includes the housing market, by:
Helping more individuals qualify for loans and increasing an individual’s purchasing power; and
Positively impacting home equity lines of credit.

How will the rate cut affect consumers?
The cut will affect consumers in a variety of ways:
Those who have home equity lines of credit that are tied to prime or short term Adjustable Rate Mortgages (ARM) could see an immediate reduction in their interest rate.
Those consumers who have adjustable rate mortgages that are tied to key indexes like the One Year Treasury Bill, 12-month Treasury Average and LIBOR Index may receive the benefit of this reduction as the indexes start to move lower in conjunction with lower rates.

What the lending experts are saying.
Robert Reid, the President and CEO for Mortgage Banker Princeton Capital released the following statement on Tuesday following the cut, “The rate cut bodes well for both home buyers and homeowners with adjustable rate mortgages. The cut also puts further downward pressure on mortgage rates. Rates have been moving down the last several months with the previous Federal Reserve cuts, so today’s action will continue this movement which increases home affordability. The conforming rates were at a two-year low prior to the cut and will likely decrease further which will help push jumbo rates down further as well. Lower rates increase affordability which should motivate more homebuyers to get into the market sooner rather than later.”

Based on interest rates and the current state of the economy, is now a good time to buy?
We believe this may be the time to buy a home, especially if owning a home is going to be a long-term commitment. Interest rates remain at attractive lows; this increases an individual’s purchasing power and makes the mortgage payment more manageable. In some areas, prices have softened as inventory has grown. All this is leading up to a very strong market for buyers.

If you have been thinking about buying or selling, now may be your best opportunity in more than a decade to do so. We would welcome the opportunity to counsel you on the opportunities available in today’s market and help you take advantage of them before it is too late.

Please call us today so we may get started.

Brian Malcolm & Monica Manocha Re, CMRS
The Malcolm & Manocha Group
www.mmgproperties.com
Direct: 408 399 1495 or Cell: 408 930 5623