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
Tuesday, January 17, 2012
Monday, January 9, 2012
Some facts about real estate in the Bay.
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.
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.
Wednesday, December 28, 2011
Should you buy a home in 2012? We love to listen to the news...what are others saying?
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
http://www.linkedin.com/news?actionBar=&articleID=1001743220&ids=3kOc3sRe38Nc34Ie38RejwTcj4MciMRcPgRd3wQc30Nb3sTejgOe3wVeiMMcz8Pd3sNc30N&aag=true&freq=weekly&trk=eml-tod2-b-ttl-0&ut=34WAB7fTL__501
Wednesday, November 23, 2011
Are home prices rising already? Time to make your move....
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.)
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.)
Friday, November 18, 2011
13,780 Homes Sold Yesterday
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.
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.
Tuesday, November 15, 2011
It's the time to buy now!
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
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
Tuesday, November 1, 2011
60 Days till 2012!!
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)
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)
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