Just a few years ago, homes in foreclosure were rare and many didn’t fully understand all was entailed in having a home become “bank owned.”  Today, “foreclosure” seems to be the markets’ buzz word as many are seeing loss of jobs and the markets’ decline in home sale prices.  Consequently, this environment has brought a new term to the surface: underwater homes.  Underwater homes are those that have mortgages that are greater than the home’s current worth on the market.  This, in turn, is resulting in an increase in foreclosures.

Recently, CoreLogic, a Real Estate date provider, noted that there were  11 million homes with underwater mortgages at the end of June.  Of course, this seems to be good news since the number of underwater homes at the end of March was 11.2 million.  However, these homes are simply turning into foreclosures instead of proving that the market is actually turning around.  Typically, underwater homes rise when the market sees falling home prices.

An article by CoreLogic explained, “In all, 23 percent of U.S. homes with mortgages were underwater at the end of June.  Another 2.4 percent of homeowners with a mortgage had less than 5 percent equity in their home, making them more likely to end up underwater if home prices drop further.  The total number of underwater mortgages represent roughly $2.9 trillion in mortgage debt.”

Once homes are underwater, homeowners have a harder time recovering.  They oftentimes are unable to qualify for mortgage refinancing and therefore find themselves just scraping by to make payments in order to keep their head above water.   California is in the top five states for underwater mortgages and has therefore become one of the top states in the nation for foreclosures.

We’ve seen some changes in the San Mateo Coastal area, but are happy to see the numbers are not as drastic as other areas in our state.  Below are current numbers of active and foreclosed listings in our market.

If you have any questions regarding underwater mortgages or are facing a prospective foreclosure; please let us know!  We have years of experience in the San Mateo Coastal area and can help guide you each step of the way!

Kathy & Michael Rain
Your San Mateo Coastal Real Estate Experts

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Pacifica Gardens is an urban agricultural project spanning 30,000 square feet located on an abandoned soccer field at Linda Mar High School in Pacifica.  This project of Pacifica’s Environmental Family, is a non-profit organization with a goal to “increase environmental awareness in the community and in the schools” with a mission of: Educate, Cultivate and Inspire.  There always seems to be something new and exciting taking place at the gardens from workshops to new plants or volunteer opportunities.  Current projects that are taking place are culinary and medicinal herbs, biointensive food gardens, native plants, food donation programs, adult composting workshops and much more!

This outstanding community organization exists because of the help from volunteers and local supporters!  Each Saturday, volunteers are welcome to drop by the gardens to help out!  You can stay all day or just help out for an hour, with any volunteer work being greatly appreciated.  There are opportunities to serve the community on a regular basis by being a part of one of the watering teams or the building team, there are also crews who enjoy native plants, harvesting, planting or picking.  There are a number of ways to get involved!

The next Composting Workshop will be Sunday, September 12 from 2-4pm and is free to attend! Check out the Pacifica Gardens website for more information.  The Pacifica community is a town in which the environment and personal growth are of upmost importance and it spills out into everything the residents do!  If being a part of this great area is something you’re looking into; let us know!  We’d be happy to show you around Pacifica and answer any questions you may have regarding Pacifica Real Estate.  Let us help you find your dream home in Pacifica!

Kathy & Michael Rain
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Devil’s Slide crews dig for home

Walk through $342 million project with tunnel veteran

By Lily Bixler

With an over-exaggerated rounding of his headlamp, a tunnel worker deep inside the belly of the Devil’s Slide excavation signals right of way to an approaching big rig. Once the worker stops the circular motion, the sticker on his helmet comes into focus: “I love explosives.”

Around 35 tunnels into his career, Caltrans safety consultant Tom LeRoux has a resume “10 pages thick” and says, at this point, his olfactory senses can distinguish tunnels. Some smell like sewage because of the hydrogen sulfate; others take on the odor of dynamite. And the 4,200-foot twin tunnels that evade Devil’s Slide by burrowing through Montara Mountain?

According to LeRoux, this tunnel project “smells like money.”

In total, the northbound and southbound individual bores, a set of bridges and an operations center cost $342 million, which is pretty average when compared to similar tunnels like the $420 million Caldecott fourth bore being built to connect Oakland and Contra Costa County. But this one is unique because it’s the first such tunnel in California since 1964.

Storms in 2005 and 2006 washed out Devil’s Slide on Highway 1, and months of road closure took a toll on tourism on the Coastside. The storms also took the wind out of many commuters who were forced to take a circuitous route to points beyond the coast.

A tunnel project to bypass that dangerous slice of the coast broke ground in November 2007 and is now more than 90 percent of the way finished. In late October workers expect their carbide steel head drill to break through to the northern end. The tunnel should be open for drivers by late 2011 or early 2012. Tunnel engineers expect the tunnel will have a 75-year design life before needing major repairs.    Read more….

If you have any questions about this project or about the San Mateo Coastal area Real Estate market; let us know!

Kathy & Michael Rain
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But despite the gloomy atmosphere, workers are making major progress on the $325 million tunnel project, which includes a pair of arched bridges and an operations center. The buildings and the bridges are finished, and the tunnel diggers are expected to bust through the north end of the mountain by this fall. A little more than a year later, the finished tunnel should open to traffic.

No one will be happier than residents of the coastal communities who depend on that scenic but unstable stretch of Highway 1.

The Devil’s Slide tunnel will be California’s first highway tunnel built since 1964, when the third bore of the East Bay’s Caldecott Tunnel opened. Tunneling is dirty and dangerous work, and progress is slow. Workers wear not only the usual hardhats, reflective vests and other construction safety gear, they also carry flashlights or headlamps, respirators and emergency “self rescue kits” that provide oxygen in the event of an accident like a gas leak, collapse, fire or power failure.

We posted some pictures we took from when the project began, and more recently, on June 12, 2010. See more photos on our Devil’s Slide Tunnel Page.

Project start:

June 12, 2010:

According to the National Association of Realtors, a recent report gave a resounding “No” to this question.  Since the tax credit had already been expanded and extended twice since it’s conception two years ago; it is very doubtful that this will be extended again.  A spokesman for the National Association of Realtors (NAR) notes that, “It’s time for the housing market to stand on its own two feet.”  It may be that we are seeing an increase in the housing market activity that we no longer need the push from the government.

However, California has offered a tax credit of $10,000 (see our previous post from Mortgage Advisor Andy Block) and is willing to walk with its’ residents a few more steps of the way.

If you have any questions on the California Tax Credit, please let us know!  We have been in the San Mateo Real Estate market for a while and are up to date on all the latest happenings.  It can be tricky to navigate through and we are committed to helping buyers or sellers every step of the way!   We look forward to hearing from you soon!

Kathy & Michael Rain
Your San Mateo Coastal Real Estate Experts

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Beginning today, you can head to the library to learn about Composting or view Disney’s Documentary Film:  Earth.  Tomorrow and Thursday, you will find information on “green” food, solar energy, smart cars and sustainable energy- to name a few!  This is a great way for anyone from adults to children to learn how to make not only San Mateo, but our whole earth a better place to live!

The San Mateo Coast is very in tune with how we are to care for our surroundings and finds that “green” living is a part of our culture.  With natural beauty from every angle, it’s no wonder why San Mateo is a desirable place to call home!  Throughout the year, our coastline communities provide a variety of ways to stay in touch with the environment while building “green” into our daily lifestyles. Why not visit the stunning coastline of San Mateo?  You may be temped to stay, and if you are, we can help you in your San Mateo home search!  We look forward to showing you around!

For more information on the San Mateo Public Library’s Earth Day events, click here.

We hope you enjoy our earth on this special day!

Kathy & Michael Rain
Your San Mateo Coastal Real Estate Experts

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This legislation allocates $200 million to fund tax credits for qualified home purchases; $100 million is for buyers of new, unoccupied homes and the other $100 million is for first time buyers of existing homes.

The tax credits will be available to home buyers on a first-come, first-served basis. This is an incentive for your buyers to act now (as a reminder, the $100 million allocated for last year’s new home buyer program was depleted in just four months).

A notable feature of this year’s legislation is that buyers of newly constructed homes may choose to reserve a tax credit prior to the close of escrow. This will become important as California nears the $100 million cap for homes that may not close escrow before the cap is reached. Buyers that are applying for the First-Time Buyer Credit (purchasing existing homes) will not be able to reserve the tax credit before escrow closes. Details about how to reserve the tax credit can be found here.

Below are some highlights of the new tax credit program:

·         Buyers of existing homes must close escrow between May 1, 2010 and December 31, 2010.

·         Buyers of new homes can reserve their credit by entering into an enforceable contract between May 1, 2010 and December 31, 2010. They must file the proper paperwork with the tax board and close escrow by August 1, 2011.

·         First-time home buyers are eligible whether they buy a newly built or an existing home.

·         Current homeowners looking to trade up must buy a newly built home in order to receive the tax credit.

·         If a taxpayer qualifies for both tax credits, the law specifies that that the New Home Credit be applied (only one tax credit is allowed per taxpayer).

·         The tax credit is worth up to 5% of the purchase price of the home, or $10K, whichever is less.

·         The credit will be allocated evenly over three years. If a buyer qualifies for the full $10,000 tax credit, they’ll get up to $3,333 per year. They will need to consult with their CPA for details and eligibility as related to their specific situation.

·         The buyer cannot be a dependent and the home purchased can’t belong to a relative.

·         The buyer is required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).

And, although it’s a small window, there are some buyers that may be able to combine this new California tax credit with the $8,000 Federal Home Buyer Tax Credit for a total of $18,000 in tax credits. To do so, the purchase contract must be signed by April 30, 2010 (for Federal eligibility) and the purchase must close between May 1, 2010 (when the California program begins) and June 30, 2010 (when the Federal program ends). For the purposes of the California tax credit, the purchase date is defined as the date escrow closes.

As always, please call me to discuss specific situations or to schedule time to review your clients’ mortgage or financial strategies.

Best regards,

ANDY BLOCK
Mortgage Advisor & Financial Advisor
Email · Biography
650.931.0605
License 01096311

For more San Mateo Real Estate information or questions, feel free to contact us today!  We enjoy life on the San Mateo Coast and feel it’s our privilege to help others feel right at home here as well!  We look forward to hearing from you!

Kathy & Michael Rain
Your San Mateo Coastal Real Estate Experts

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San Mateo Coastal area

According to First American Core Logic statisticians, the next 12 months will bring about a gain of 4.5% in home prices. Last month alone, an estimated 28,111 new and resale houses and condos were sold in California, which rose 9% from January sales.  The average mortgage payment last month was $1,068.

The below chart shows the growth in Median Home Sale Prices from 2009 to 2010 San Mateo Coastal Real Estate market.

It’s exciting time in the San Mateo Coastal area as we are seeing new homes coming on the market and are seeing properties sold!  If you are looking for a home in this desirable Coastal region, we’d love to assist you in your search.  We currently have some great properties available which we would be happy to show you!  Looking to sell?  We can help you through the process from start to finish!  We look forward to hearing from you!

Kathy & Michael Rain
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1. Inflation leads to higher interest rates.
2. Houses are selling in high quantities.
3. If you’re a seller, it’s time to cut your price and be decisive; if you’re a buyer, it’s time to purchase or miss out on the opportunity.

Houses Are Selling in High Quantities

According to the National Association of REALTORS ®, the U.S. is currently in position to sell 4.68 million homes this year. That would put 2009 within the top 5% of homes sold in U.S. history. Although many people are purchasing distressed properties in foreclosure or short sales, there’s also a large number of purchases made on non-distressed property sales. The market is indicating that we may have reached the bottom.

Buyers and Sellers

• Buyers—don’t make the mistake of waiting for everybody else to make a move before you feel comfortable enough to purchase. Many people have made a purchasing decision already, and we never know what the bottom of the market is until it has passed. Here’s one thing you can take to the bank – higher interest rates are the equivalent of a price increase.

• Sellers—if you’re serious about selling your property, adjust your price to where the market is moving, take your lumps and move on, or you’ll be waiting a long time.

“Get ready for inflation and higher interest rates.”  – Arthur B. Laffer, Wall Street Journal, June 11, 2009.

Information Provided by
Susan O’Driscoll
Princeton Capital- Experts in Home Lending
650-712-2483

_______________________________

Kathy & Michael Rain
Your San Mateo Coastal Real Estate Expert

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The first is taking place this Saturday, February 13, on the shores of Half Moon Bay where surfers from around the world will compete in the Mavericks Surf contest for the $150,000 prize.  Surf enthusiasts and local business owners welcome this event which has brought in upwards of 40,000 spectators in the past to the small beach surrounding Pillar Point.  For those not planning to attend the event, please note that Princeton will be closed to drivers coming off Capistrano Road at Prospect Way and Airport Street on contest day – except to Princeton residents and business owners.  And although this may make travel around this area tricky, it’s a small price to pay for the attention and business brought to our community.  If you’ve never witnessed the Mavericks Surf contest, this may be the year to check it out!

Another exciting event of which our community gets to be an integral part is The Amgen Tour of California bicycle race which was officially announced this past Wednesday and will make its way along the San Mateo Coast.  Highway 1 is stage three of this six-stage race along the coast making this the second time our highway will be used in the five years of this race’s existence.  Set for May 18, this race 120 mile race begins in Ocean Beach in San Francisco at 11:15 am and concludes in Santa Cruz, about four hours later.

If you’ve always wanted to be involved in a community where fun events are guaranteed and the residents enjoy taking part in all that’s offered, perhaps the San Mateo Coastal area is for you!  We’ve loved living in this paradise inspired location and know you would as well!  We’d be happy to show you around the community and some of the great homes that are available.  We hope to hear from you soon!

Kathy & Michael Rain
Your San Mateo Coastal Real Estate Expert

San Mateo Coastal Real Estate
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This is no more clearly seen than in the upcoming event “Spring Ahead” on February 24 from 6-8pm at Cypress Meadows in Moss Beach.  This unique event will highlight organic food from the local farmers markets, tips from resident experts on gardening and healthy living as well as live music and dance performances!  Learn about sustainable landscaping and how you can transform your lawn to be independent of water and chemicals.  Have your questions answered and become inspired by creative ideas!

San Mateo Coastal area offers many events like this throughout the year to make sure our community is growing together as we grow our environment.  Learn more about this event.

If you are searching for a strong community in a naturally beautiful setting – look no further!  The San Mateo coast has it all with close proximity to big city life while retaining a charming small coastal town feel.  We would enjoy the opportunity to answer any questions you may have regarding life here on the coast and would be happy to show you some of the amazing coastal properties that are the perfect place to call home!

Kathy & Michael Rain
Your San Mateo Coastal Real Estate Expert

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 Current homeowners can now receive a $6,500 tax credit, while first-time buyers are still eligible to receive an $8,000 credit. 
But act soon, the opportunity of a lifetime ends April 30th, 2010.

First time Home Buyer Credit has now changed 3 times.  The biggest change came in December 2009:
Extends the First-Time Home Buyer Tax Credit of up to $8000 to first-time home buyers until April 30, 2010 under the Binding Contract Rule-“as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until June 30, 2010 to close.
Who Qualifies-First-time homebuyers and current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five (5) consecutive years within the last eight years.
Increased Buyer Income-Under the Extended Home Buyer Tax Credit-effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000-may receive the maximum tax credit.
Price-Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

HURRY IF YOU’RE THINKING OF PURCHASING OR YOU’LL LOOSE OUT ON FREE MONEY!

“The FHA announced changes to its guidelines yesterday. It will raise the minimum down payment required for borrowers with credit rating scores below 580 to 10%, while the down payment for higher-ranked borrowers would stay at 3.5%. The up-front MI premium is also going from 1.75% to 2.25%. HUD is seeking congressional approval to allow it to raise annual mortgage insurance premiums — which are paid out by the borrower over the life of the loan — above the 0.55 percent maximum. Lastly, the FHA also said it was cutting the amount of aid sellers could provide buyers to 3 percent of the purchase price from 6 percent; a move it said could help lessen incentives to inflate appraised home values.”

It’s been said that the gathering of the clan brings a rush of adrenaline to the calmest.  Holiday stress comes in several forms.  First there is the last minute shopping that the brawny gender finds as stressful as divorce and death.  Maybe there is a correlation somewhere.

Secondly, there is the anticipation of getting reacquainted with the relatives. What self respecting family member isn’t concerned with  wanting a fun, pleasant reunion.  I just try to keep the names straight to remember which of the 3 Jeff’s, 4 Mike’s and 2 Terry’s belong to which cousin.  Family reunions this year were filled with good intentions and kindness as well as yelling, stress and meltdowns.

“There’s no question that the government’s first-time homebuyer tax credit has spurred a significant amount of sales this year.  Latest estimates show that some 400,000 additional sales occurred this year due to the first time home buyer tax credit, which is about 8% of all sales this year.

In the latest news, The Senate has reached a compromise on extending and expanding the $8,000 tax credit for first-time home buyers.  While its passage remains uncertain, this plan would extend the existing credit for first-time homebuyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners.  The reduced credit would be available to  homeowners who have been in their current residence for a consecutive five-year period in the past eight years.  Lawmakers in Washington also raised the qualifying income limits to $125,000 for single taxpayers and $250,000 for joint taxpayers, from the current $75,000 and $150,000.  Under the Senate compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, said the sources. The measure still faces votes in the full Senate and the House.  The U.S. Senate won’t vote until next week at the earliest. ” 

This week, Business Week reported “The broad improvement in the housing indicators in recent months leaves no doubt that the long-awaited housing recovery is finally under way.”  The article went on to report:  “Policy alone cannot explain the 24% gain in existing home sales since January, nor the 22% increase in new-home purchases, the 40% rise in single-family housing starts, and the recent upturn in home prices. The primary driver is historically high affordability. Fixed 30-year mortgage rates are at 5%, a multi-decade low, and prices have plunged a total of 30% since May 2006, based on the Standard & Poor’s Case-Shiller Home Price Index. By that price gauge, homes are well undervalued relative to both rents and aftertax income.”

Here is what is happening in San Mateo County

• Peninsula—Half Moon Bay reported it is sensing a slow down with less inventory. MLS tour sheet reflects all the retours, many with price reductions and few new listings.  Menlo Park El Camino reported a bit of a sea change in the market-not much new inventory, only three new listings on tour this week which is very, very low.  Menlo Park Santa Cruz Avenue reported very slow open house activity this last week.  Many listings are receiving price reductions as new inventory is limited.  Pricing is critical.  52% of the listings on the Menlo Park Atherton Broker tour have price reductions and 82% are retours.  Palo Alto Downtown reported the market is generally slow.  We feel like the holiday season has started early.  The activity is reflective of that.  Sales are down in our area.  San Mateo reported a look at its pending sales (SFR) of its six main communities; here is a breakdown of the total and the percentage of short sales plus REOs.  Belmont 31 pending sales (35% SS/REO), Burlingame 27 pending sales (33% SS/REO), Foster city 12 pending sales (18% SS/REO), Hillsborough 22 pending sales (23% SS/REO), Redwood shores 10 pending sales (10% SS/REO), San Mateo 109 pending sales (52% SS/REO).  Most of San Mateo SS/REO is in entry level areas.

El Granada, Half Moon Bay, Montara, Moss Beach (click graph to view 2-page PDF document):

Pacifica (click graph to view 2-page PDF document):

]]> http://www.coastsidelife.com/2009/10/market-trends-in-el-granada-half-moon-bay-montara-moss-beach-and-pacifica-october-2009/feed/ 0 http://www.coastsidelife.com/2009/10/monday-morning-market-update-october-19-2009-wk42/ http://www.coastsidelife.com/2009/10/monday-morning-market-update-october-19-2009-wk42/#comments Mon, 19 Oct 2009 18:30:14 +0000 Kathy Rain http://www.coastsidelife.com/?p=531 Still a Buyers Market – HALF MOON BAY through MONTARA,CALIFORNIA with just under half of the listings listed at over 1 Million. The Million plus price range is finally seeing activity.

Active Listings-120 Single Family Homes. 52 listed over 1 Million, 15 listed at $900,000 to 1Million.Pending Sales-41 with 11 listed under $600,000 and 10 listed over 1Million
93 Homes Closed since January 1, 2009 with only 14 that closed over $1,000,000 and 10 between $900,000 and 1 Million.

PACIFICA, CALIFORNIA
With YTD sales of 191 and active listing at 56, Pacifica continues to be a Seller’s market.

Active Listings-56 Single Family Homes. 8 listed at $1,000,000 or higher and 17 listed under $600,000.
Pending Sales-52 Single Family Homes with 20 listed under $500,000 and 15 listed between $500,000 and $600,000. 8 Properties went Sale Pending this week with 3 listed under $500,000
191 Closed Sales since January 1, 2009 with 8 that were listed for over $900,000. 107 sales were from homes listed at $600,000 or less. 4 new sales this week.

ABSORPTION RATE
Absorption Rate is the number of months it takes to sell the current inventory at the present rate of sales.
6 months supply is a balanced market.
Less than 6 months supply is a Sellers market.
More than 6 months supply is a Buyers market

While Congress continues to debate the issue, we as Realtors, are calling for support for the expansion of the tax credit from first-time buyers to all homebuyers, increasing the maximum amount of the tax credit from $8,000 to $15,000, eliminating the existing income caps for eligibility purposes and extending this homebuyer tax credit for one year from the date of enactment.
We believe that stimulating demand for housing—particularly in the repeat buyer market—is the most effective way for Congress to help lead the U.S. economy into a recovery and back on the path to growth. And we have to remember that it’s not just the entry level that is affected. The move-up buyer begins the process in building more demand in our mid-tier price points and ultimately our higher-end markets. Timing is critical and we hope that Congress is listening.

While the clock ticks and we await the results of the debate on Capitol Hill, let’s take a look at this week in real estate:

• East Bay—Berkeley reports a rather slow start to October, compared to our previous months. Anything priced $400-750k is getting lots of attention. Open houses were competing with a popular local street fair, but still garnered 45 to 30 groups at the newer listings. Castro Valley reports new construction in our area is looking up. Pricing seems to have normalized for new construction. Otherwise, we are still seeing lots of short sales. REOs are trickling through as well. We are starting to see the Castro Valley home median price range pick up somewhat. Fremont reports the market is typical for the Fall months as people prepare for school and holidays. REO properties are still hot, but have slowed a little too. Livermore reported during this past week active listings and total pending sales remained stable in both Livermore and Pleasanton. In Dublin, this past week, there was more than a 20% increase in listings, and a decline of 10% in total pending sales. $500,000 and below still remains very “Hot” with multiple offers. Walnut Creek reports very low inventory with multiple offers on almost every sale. Even with multiple offers, properties in the $600,000 – $1,000,000 range are not selling much over asking. Buyers are still very cautious, some not quite convinced that the market has hit “bottom.” REOs are barely trickling in.
• Monterey County—Things seem to be slowing down just a bit, though we have had some high-end sales of late, as the inventory of REOs is dwindling and the expected onslaught of new REOs has not yet materialized. Great mortgage rates we’re seeing right now may encourage another surge of sales.
• North Bay—The San Rafael office reports the under $300K market in San Rafael has slowed due to lack of inventory. In Novato the $300-600K price point is steady and the under 300K price point holding steady over the past few months. Cash is still king in bidding wars. Southern Marin reports listings are slowing down considerably. Sebastopol reports buyers are kicking tires at open houses. Listing activity is very slow.
• Peninsula—Burlingame reports appraisal problems are becoming more common and buyers demands are becoming excessive. The Agents are working so hard to hold their transactions together. The number of sales have picked up however and hopes are high for a strong Q4 finish. Half Moon Bay reports the price point is the only thing that matters in receiving offers on listings. Over the $1m mark is still very quiet. Menlo Park El Camino reports buyers are absolutely out there but come out of the bushes only when lured by a great house at a great price. We had nine offers, 25 offers, 6 offers – where are the 8 and 24 and 5 buyers that didn’t get the house? They will buy when the right house gets to the current market price. Redwood City/San Carlos reports one of the multiple offers was our listing and it was priced at $775,000—in San Carlos. There were five offers and it went $55,000 over list price. Three out of the five offers were very close. Moods seem positive. Woodside reported buyers are still on the fence for anything over $4 million. Almost nothing will lure them out. Under that level, it is price, price, price.
• San Francisco—Lombard reported truism reinforced this week: “Price it right, right out of the gate.” Buyers are writing right away if they see value and sense competition. But not returning to see the stale listings with the multiple mini reductions. Many sellers are still not getting this. Market Street reported that there was a lot to do around San Francisco over the weekend so open houses were a little less well attended than past weekends. However, those who attended were especially eager to buy before the end of the year. Van Ness reported both large and small deals are moving well. Activity level is picking up again.
• Santa Cruz County—The lower end market below $600K continues to dominate the lion’s share of sales. Agents are working really hard to keep deals moving forward and at times buyers continued interest in the property if escrows drag on. The Agents are still doing a lot of short sales, some taking months and months. The REO market especially south County – Watsonville – is almost completely dried up and those few actives are getting multiple offers – with cash buyers winning the bids.
• Silicon Valley—Cupertino reports we typically have a lot more sales than listings. Last week the numbers were just about even. Open house traffic was insane! Los Altos reports buyers are trying to find an affordable home in most cases and are competing in multiple offers with cash investors. Mid tier buyers have more time to consider and the upper end is slow. San Jose Almaden reports the market is tapering off a bit on the sales now, not by much but a little. Open houses remain very busy still. With rates as good as they are and inventory shrinking and tax credits ending I would expect more sales. Perhaps the upcoming weeks will prove this to be true. All sales made this week were multiple offers. Willow Glen reports multiple offers are still the norm and many of the Agents in this office have clients that are losing out. Inventory is somewhat down as well.
• South County—Morgan Hill reports each local market is unique and comes with its own set of challenges. Here in South County offerings on the MLS range from one-bedroom condos to huge estates on acreage. We have horse properties, PUDs, single-family developments and attached housing and everything in between. The buying public, for the last six months, has zeroed in on entry level housing (those homes listed under $500,000). That segment of the market is thriving.

MONDAY MORNING MARKET UPDATE WILL RESUME NEXT WEEK

“The patient is out of intensive care, but still has a very long road ahead to a clean bill of health.” 

by Rick Turley, Bay Area President, Coldwell Banker Residential Brokerage

Those were the words last week from Fannie Mae Chief Executive Officer Michael Williams.  The CEO went on to say, “Anyone looking objectively at the economy and the housing market sees hope.”

Another good solid indicator of what I’ve been saying in my weekly updates.  The U.S. housing market still has a long road ahead but we are making some definite moves towards a housing recovery.  So what’s the challenge?  Well for starters, rising unemployment numbers aren’t helping.  The United States Department of Labor reported in its September 4 Economic Situation Summary that the number of unemployed persons increased by 466,000 to 14.9 million and the unemployment rate rose by 0.3 percentage point to 9.7%.  Just to give you an idea, since the recession began in December 2007, the number of unemployed persons has risen by 7.4 million, and the unemployment rate has grown by 4.8 percentage points.

We also need to couple that with the challenges in the mortgage industry.  Bloomberg reported, “The mortgage market is still dependent on government-affiliated programs, with private banks providing just 10 percent of loan liquidity, down from about 60 percent in 2006.  Fannie Mae and Freddie Mac are responsible for about 70 percent of all new mortgages, while the Federal Housing Administration accounts for about 20 percent.”

Before we can be truly reformed, we need to get into a position where there is more of a balance between private bank loans and Fannie Mae and Freddie Mac loans.  In all actuality, we probably won’t see that for some time.

Having said that, U.S. mortgage applications surged last week with demanding rising to its highest level since late-May as consumers sought to take advantage of the lowest interest rates in months, according to Reuters.

The Reuters article reported, “While home refinancing loans dominated demand, the appetite for applications to buy a home, a tentative early indicator of sales, hit its highest level since early January.  The overall trend bodes well for the hard-hit U.S. housing market, which has been showing signs of stabilization.”

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications which includes both purchase and refinance loans, for the week ended September 4 increased 17.0 percent to 648.3, the highest level since the week ended May 29.

These are all very positive indicators that showcase that we are on the right track…it’ll probably be a slow track…but we’re on the right one.

Now let’s take a look at this week in real estate:

• East  Bay—Berkeley reported a slow week compared to our brisk start to September.  Castro Valley reported our local micromarket is full of challenges.  Not enough inventory, hungry buyers with lots of cash, Agents who must navigate the challenges of appraisal problems, short sale bank frustrations and stiff competition for limited inventory.  We are seeing more listings out there.  They are selling quick, though, often within a week or so of listing.  Danville reported a spurt of activity the first week of September and then it got quiet.  Inventory and sales activity is down both in our office and in our service area.  Fremont reported it seems that the recent Wall Street financial information has made buyers more comfortable and motivated to purchase now that prices are starting to increase and the first time buyer program is ending in November which is another motivator.  Walnut Creek reported sales activity has really slowed down.  Fewer REOs coming on the market though there is an increase of short sale listings.  Multiple offers on most every sale. Orinda reports lower attendance at recent open houses, but the Buyers who do show up are more serious and ready to make offers.
• Monterey County—REOs and Short Sales are continuing on at steady pace, but we are seeing more “traditional” sales than over summer.  We’re getting lower on inventory in the hot REO market of Seaside; however, we keep hearing that the release of a large number of REOs there is imminent.  With Labor Day holiday last week, our closings were weak, though had one over $1 million and one over $2 million, but had good week for new escrows.
• North Bay—Petaluma reported lots of movement in the $500,000 and above range. Under $300,000 continues to be a frenzy with double digit multiple offers. Cash is king.  Santa Rosa concurred noting, too, that cash was king though the Sonoma County market did also note that open houses weren’t as well attended last week as they have been in recent weeks.  Sebastopol reported lots of folks out despite the weather.  Good attendance in all price ranges but most offers remain in the low end.  San Rafael reported the market has slowed in the past few weeks.  Inventory is still low.  78 people came through a new listing held open for the first time in Novato in the mid $700s.  An offer came in the next day.  Greenbrae reported (San Rafael & Corte Madera) had two $1 mil properties come on for the first time last week and had multiple offers by Monday.  Activity not as robust as we hoped but lots of new properties coming on the market so perhaps buyers need a chance to digest the new investors.
• Peninsula—Menlo Park El Camino reports Agents are busy.  The job of being a real estate Agent right now is very hard but the Agents see some deals are being made.  Big loans are still like apparitions.  Menlo Park Santa Cruz Avenue reported good activity following the Labor Day Holiday.  One Hillsborough listing ($6,500,000) was ratified after one week on the market!  Redwood City-San Carlos reported open house activity has definitely picked up.  Buyers seem more ready to make offers.  Woodside reported Woodside and Portola Valley are extremely difficult markets (especially Woodside).  The price point is so high that buyers will not buy and those who are selling are only selling because they have to.  EX: just closed a house at $5.6 mil that the owners paid $13 million for in yr. 2000.  Very few homes on the market representative of the usual Woodside market.
• San Francisco—Lombard reported the number of houses going pending look OK but mostly entry level prices. Labor Day listing surge is happening in the City: 165 new listings entered. The lower the price the more offers. One REO we got in Hayward yielded 33 offers.  The Market Street office reported open house activity was brisk last weekend with 60 groups going through a listing in District 5.  2/3 of the ratified offers were for new construction where good deals are still to be had.  This week the only multiple offers came in on a short sale.  Prices varied from $300K to $940K.  The Noriega office reported Agent activities are high but it’s tough to get deals ratified.  Even after deals are ratified, it takes a lot of work and negotiations afterward to keep the deal alive.
• Santa Cruz—August was slower than 2008 in terms of number of sales and overall prices have dropped within the office about $100K since last year at this time.  Open house activity is still good and there continues to be a pent up demand for properties as the inventory levels remain low.
• Silicon Valley—Cupertino reported it’s busy and an ever increasing challenge getting those deals closed.   Los Altos reported activity is picking up as we head into the normal fall home buying season.   San Jose Willow Glen reported things are slowing up a bit. Open houses still draw a lot of crowds. A couple of the sales that have been turned in, have sold over the asking and it appears that the listing prices were set low to attract buyers.  Saratoga reported  a steady increase in average sales prices over the last six months. Instead of the sales consisting of REOs and Short Sales we’re seeing brisk sales activity up to two million.
• South County—Hollister reported we are seeing great opportunities in establishing client relationships with office floor calls and walk ins this past week.  Inventory is still low and first time homebuyers are struggling trying to secure a contract.  Some REO Listings have received up to 20 offers.  Morgan Hill reported the South County market continues its same scenario–lots of potential buyers and very low inventory.  This week the number of total listings in all of Morgan Hill fell to 125 units–an all time low.  Employing simple “supply and demand” economics, this situation should result in prices beginning to rise–though none of us has witnessed this phenomenon yet.

ABSORPTION RATE
Absorption Rate is the number of months it takes to sell the current inventory at the present rate of sales.
6 months supply is a blanaced market.  Less than 6 months supply is a Sellers market.  More than 6 months supply is a Buyers market.

Still a Buyers Market – HALF MOON BAY through MONTARA, CALIFORNIA with 16 months supply.

Active Listings are back down this week.  Still, the number of active listings has not been at this level since the first of the year.  This is a very encouraging sign for Sellers. 54 of the listings are listed at over 1 Million. 16 between $999-$900,000 and 16 homes listed between $500,000 and $700,000.  Of the 6 new Pending Sales this week, the highest list price was $749,000.  The activity was surprisingly steady for the month of August.

Active Listings-127  Single Family Homes with 54  listed at $1 Million or more.
5 New Listings this week with 1 listed at $1,00,000 plus.

Pending Sales-42 Single Family Homes with 9 listed for under $500,000 and 4 over 1 Million.  The bulk of the pendings, 33, were listed between $500-900,000.  6 Properties went Sale Pending this week.

66 Homes Closed since January 1, 2009 with only 12 that closed over $1,000,000,  and 35 that were listed between $600,000-$800,000.  1 home closed this week and was listed at $1,195,000 and closed at $1,175,000.

Sellers Market with few Homes for Sale – PACIFICA, CALIFORNIA with 2.2 months supply.

This week, 9 new listings with 5 listed under $600,000 and 4 over.    Of the 5 new pending sales, all were listed between $595,000-$695,000.  Statistics remain consistent another week with the current number of Active Listings divided by the average number of homes sold YTD, there is 2.2 months of inventory of Active listings. Sales look like they are going to slow considerably unless more listings in the lower price ranges come on the market.  Most of the short sales have been sold with some still in the condo/townhouse market.

Active Listings-44 Single Family Homes.  6 listed at $800,000 or higher and 14  listed under $600,000.  9 new listings this week.

Pending Sales-49 Single Family Homes with 1 listed over $1,000,000 and 27 listed under $500,000.  5 Properties went Sale Pending this week all listed between $595,000-$695,000.

165 Closed Sales since January 1, 2009 with 8 that were listed for over $900,000. 72 sales were from homes listed at $500,000 or less.  5 homes closed this week.

This weeks new listings outpaced the homes that went sales pending which has a bit of a increase in active homes for sale.  Now that September is here, we are looking to see what the new activity is going to be in Pacifica.

Generally speaking the Bay Area real estate market has seen a bit of a bounce this summer with sales increasing in all categories—from the entry level homes and condos to the high-end market. 

National figures showed June with an 11% increase in home sales and the Bay Area seemed to share that trend with July sales up 15% over July 2008.  As the number of sold units continues an upward trend, price recovery is a bit of a mixed bag depending on the area. The entry level median price is increasing in all counties, due to very little supply against a healthy demand.  The just-under, just-over $1M mark seems to be holding its own, with a few multiple offers out there for the right property in a sought-after community. The higher end properties over $2M have, in the past 30 days, seen more activity than at any time this year, but price remains a critical factor as to which properties seeing this activity actually go into contract.  It seems the higher the price-point, the more critical it is for a very attractive list price.  Sellers who are selling are very realistic about marketing price, and Buyers who are buying are recognizing good value when they see it, and are taking action swiftly. For cash buyers or those with large down payments, this could be a great time to pick up a bargain in the luxury home market. 

This week the National Association of Realtors released its monthly existing home sales report (http://www.realtor.org/press_room/news_releases/2009/08/strong_uptrend?LID=RONav0021) noting “For the first time in five years, existing-home sales have increased for four months in a row, according to the National Association of Realtors®.”  The report went on to note, “Existing home sales – including single-family, townhomes, condominiums and co-ops – rose 7.2 percent to a seasonally adjusted rate of 5.24 million units in July from a level of 4.89 million in June, and are 5.0 percent above the 4.99 million-unit pace in July 2008.  The last time sales rose for four consecutive months was in June 2004, and the last time sales were higher than a year earlier was November 2005.” 

Lawrence Yun, NAR chief economist, said he was encouraged.  “The housing market has decisively turned for the better.  A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing to higher sales,” he said. Ultimately these are all very positive signs for our market and are a strong sign that we are moving in the right direction towards a housing recovery.

A few other interesting articles of note for the week: 

• Home Prices On An Upswing In The Second Quarter Of 2009 According To The S&P/Case-Shiller Home Price Indices; Case-Shiller
• New Home Sales Blast Past Expectations; CNNMoney.com
• The Housing Market: Has It Turned the Corner?; TIME Magazine
• Mortgage Applications Increase In Latest MBA Weekly Survey; Mortgage Bankers Association
• Home Market Shows Signs of Life as Declines Slow; Bloomberg 

Now let’s take a look at this week in real estate: 

• East  Bay—Berkeley reports some buyers are still not prepared to compete in a multiple offer situation and may not believe this market until they’ve lost out on a few properties.  Castro Valley reports there is very limited inventory in our local market right now.  We had nine homes on Brokers tour during the course of this week, and Agents are hungry for homes to sell.  We had a few properties that hit the market this week and went pending in a matter of days.  Multiples, multiples, multiples.  There is an increase in the number of buyers calling our office looking for agents to help them buy.  We have gotten a lot more floor activity in the past week, despite the drop off in activity due to kids going back to school.  Danville reports all market activity is strong.  Lack of inventory is holding down sales.  Prices at the bottom are firm – prices at the top are still correcting.  Oakland reported we had three nice sales averaging $2 million for the week.  One of them was the property that we had marketed for a year and a half.  The buyer came to an open house (we had over 100 groups through) and bought it all cash for over $2 million dollars and a very quick close.  Everyone feels there is momentum in the market.  We had more open houses last weekend than previous weekends  and they are well attended
• Monterey County—The steady beat of listings and escrows continues the Monterey Peninsula.  We are seeing sales in all price ranges, except the very top over $10 million and those are slow even in the best of times.  One third of our new escrows last week were for properties priced between $1.2 million and $1.9 million.  We see sales in that $1-2 million range really picking up of late. 
• North Bay—San Rafael reported cash is king when it comes to winning the multiple offer game in the entry level market.  Nearby Southern Marin reported every deal requires heavy negotiating and seller concessions and last minute delays in removing loan contingencies.  Sebastopol noted open houses remain well attended. Every escrow has its own special demands, lender conditions, low appraisals, and Agents on the other side that won’t play nice.  Santa Rosa noted REO listings are starting to appear in increasing numbers. A noticeable increase in open escrows from $500,000-$900,000.
• Peninsula—Burlingame noted that activity has picked up a lot, many buyers are getting involved in multiple offers and are beginning to understand that the market has changed and they need to step up to the plate when that perfect property comes along.  Half Moon Bay reported activity has picked up on the coast as seller’s are pricing their properties to sell within one or two weeks, along with the moving of some stagnate listings requiring many counter offers.  Menlo Park Santa Cruz Avenue reported two homes sold last week with multiple offers however neither went over the list price. Open houses were busy averaging 20-25 groups.  Palo Alto reported Inventory is slow to come on the market. Listings and sales are seasonally slow. Looking forward to a brisk after Labor Day market.  San Mateo reported there has been some more intense movement in the $1.2-1.5 range – Hooray!!!
• San Francisco—The Lombard office reported a slow week except for the entry level and REO markets which remain hot, with multiple offers, including a surprising number of all cash. Major price reductions on the upper-end bringing mixed results. More hints of a listing surge post Labor Day.  The Market Street office reported lots of activity the last two weeks.  Back-up offers being elevated, properties that have been on the market for a while getting into contract, and buyers who want to get in to a home before prices go up and be assured of their $8,000first-time home buyer credit. There has been more activity than a normal August with fewer agents in the office taking time off.
• Santa Cruz County—In last four months, the median price in the county has risen 23% or about $100,000 which is a very good sign.  Prices are still down about 14% from where they were a year ago at this time but it is definitely going in the right direction.  Inventory levels are down from a year ago with a 5.5 month supply of single family homes on the market as compared to 8.5 month supply in July/August of last year. Overall, there is improvement which is wonderful!
• Silicon Valley—San Jose Almaden reported a hot low end market continues to fuel sales.  Highest sale last week was $550,000.  Two-thirds of the sales were under $300,000!  The Willow Glen office reported we are seeing a lot more multiple offers on our listings.  Saratoga reported our Previews (luxury end) market is still slow.  REOs and short sales still dominate the market; however there is a slow steady increase in our office’s average sales price. I think this is due to a much healthier market in the $750,000 to $2,000,000 range.
• South County—Sale prices are exceeding list prices on sales under $400K due to lack of inventory.  On REO listings it is typical to have 5-10 multiple offers in that price range. Contingency time frames are usually shortened to strengthen the offer.  Short sale listings are increasing with back up offers in place.  Open houses are well attended and floor calls have been on the rise!  Morgan Hill reported the market remains unchanged for the past several weeks.  There is great demand for entry level homes–multiple offers happen and then there is just one successful buyer. 

Several offices are talking about a post Labor Day surge in new listings.  The Buyer appetite seems to be there, as long as the listings are priced right.  Typically August is the slowest of summer months with vacations taking priority, however this month has seen the best Buyer activity all year long for many offices.

 Please note that next week we’ll take a brief hiatus from Weekly Market Watch for the Labor Day weekend, but we will return the following week. 

Until then,

Make it a good one,

Rick 

Rick Turley

President, San Francisco Bay Area

Coldwell Banker Residential Brokerage

“I was driving home from an office meeting this week and listening to NPR.  Health Care and Town Hall meetings have been taking the spotlight lately, with the recession and the more recently upbeat Dow Jones moving down a few stories.  This in itself is somewhat a good sign.  During the drive, an interesting report came on which mentioned that the Federal Reserve, having just finished a two day meeting, was reporting the recession is ending. 

When I got home I decided to Google the news and I found this article on the NYTimes.com website:  http://www.nytimes.com/2009/08/13/business/economy/13fed.html?_r=2&partner=rss&emc=rss&src=igw.  The article reports, “Almost exactly two years after it embarked on what was the biggest financial rescue in American history, the Federal Reserve said on Wednesday that the recession is ending and that it would take a step back toward normal policy.”

The article goes on to note “Though the central bank stopped well short of declaring victory, policy makers issue their most upbeat assessment in more than a year by saying that the downturn appears to have hit bottom and that consumer spending, financial markets and inventory building by corporations all continued to stabilize.” 

I put a call into colleague Brendon Riordan of Princeton Capital to get his take on what those in the mortgage industry are seeing in relation to the current state of the economy.  Brendon had some comments that I tend to agree with.  He noted that “Many are concerned we’re going to have a ‘W’ shaped recovery versus a ‘V’ shaped recovery.  We don’t want to proclaim the recession is over, only to see the economy struggle for another year.  It’s going to be a long, slow recovery.  One month we may have positive economic news and the next, poor economic news.” 

Having said that, here is what we tend to be seeing about the market: 

• It does appear that the worst of the recession may be behind us.
• In all likelihood, the Fed is going to keep rates relatively low well into next year by continuing to purchase mortgage backed securities and keep the Federal Funds Rate close to zero.  It is currently at .25%.
• In terms of conforming loan limits, as of right now, the higher conforming loan limits will end at the end of this year.  There is some legislation that is pending to renew the higher loan amount through November 2010 but as of right now, that is pending.  The same holds true for the first-time home buyer tax credit. We need to support this legislation.

Knowing this, what lies ahead?  Well I would say it’s positive to know that the worst may be behind us, but in all likelihood there are still challenges ahead.  There is still much recovery that needs to take place.  A broad-based “U” shaped recovery certainly is preferable over a “W”. Jobs need to continue to stabilize. There needs to be improvement in the secondary mortgage market in order to provide more choices and better pricing for jumbo loans.  Home sellers will need to be realistic about price, and buyers will need to be able to recognize a bargain when they see it and take action.  

Now let’s take a look at our local week in real estate: 

• East Bay—Berkeley reports, “We are busy, busy, busy.”  Lots of buyers making lots of offers and multiple offers abound.  We received anywhere from 4-17 offers on various listings and competed against 2-15 offers on others from Berkeley to Richmond to El Sobrante to San Pablo. Danville reports we saw a real jump in new pending sales this past week.  More importantly, Blackhawk, which has been so quiet for so long, had nine new pending sales.  And in our office, four new sales this past week were over $1 million dollars!  Oakland reports a sudden sense of urgency among buyers.  We are doing a lot of approvals and submitting applications.  The buyers are out there looking.  Properties in foreclosures are coming into better neighborhoods, same for short sales.  Still it is August and sales have been a little slow the first week.  Seeing some nice listings come on the market.
• Monterey County—August started out where July left off, with lots of Agent activity going on!   Pebble Beach and Carmel are bustling with people as the annual Concours d’Elegance comes to town , bringing it with it lots of people–some deciding they’d like a vacation home here!  Inventory is decreasing, partly due to sales going up and partly due to properties off market, being rented, etc.  Carmel is down to only about 14 months supply (was about 28 months), Pebble Beach is about the same, and Seaside, which has been the REO hot spot, has only 1.3 months’ supply!
• North Bay—Greenbrae reports despite the late summertime, open houses were still well attended and buyers are out looking for bargains.  Many sellers are saying they want to wait until after Labor day to put their home on the market.  Buyers want more choices.  San Rafael reports REO inventory is increasing. We continue to see multiple offers in the entry level.  One home listed in Novato had 16 offers in the first week. It went into contract $50,000 over asking. All cash offers seem to be the winners of most of the bidding wars.  Petaluma reports multiple offers continue to be the norm in the under $300,000 range. We’re starting to see activity in the $500k-700k range with multiple offers on three properties in that price range. Cash continues to be king in the under $300,000 range. One property had 22 offers, the accepted offer was cash and was less than three of the highest offers.
• Peninsula—Burlingame reports the wonderful weekend brought people out of the fog and into the peninsula. We are seeing more multiple offers as inventory is shrinking. The condo market is extremely slow.  Menlo Park Santa Cruz Avenue reported one offer was written and accepted from an open house guest! They do work!  Activity in a wide range of prices. Buyers that seem motivated to buy.  San Mateo reported these market wide stats:  Change 2009 VS 2008 same period – active – Belmont  N.C., Burlingame +23%, Foster City -15%, Hillsborough +41%, Redwood Shores +15%, San Mateo + 12%, PENDING – Belmont +23%, Burlingame +16%, Foster City +24%, Hillsborough +33%, Redwood Shores -125%, San Mateo +29%.  This reflects single family residential only. Higher ends are still a struggle as reflected in Burlingame and Hillsborough.
• San Francisco—Lombard reports a good week for ratified offers in that it wasn’t entry – price level dominant. We had sales in the $1.2 & $3m ranges. Multiple counters, addendums and loan delays are the order of the day.  The Market Street office reported it has slowed a bit as many buyers are taking a couple of weeks off before the end of summer. Listings are being readied for the after Labor Day increase of inventory that we are anticipating. Open house attendance was great in some instances and disappointing in others.
• Santa Cruz County—No major changes.  Inventory is status quo – low end continues to dominate sales.  There is a lot of activity below $800K and many times multiple offers.  With the low inventory we are seeing prices rising again, slowly. There is definitely a more positive outlook for both buyers and sellers.
• Silicon Valley—Cupertino notes that the low-end is as competitive as ever.  San Jose Almaden reports that we’re seeing multiple offers on almost everything under $500K. Inventory remains low.  San Jose Main reports an excellent week for sales, mostly lower end and excellent open house activity.  Listings continue to be hard to get.  Many multiple offers on lower end properties.  Saratoga reports we experienced a slight increase in Previews activity with a few sales in the $2.5 mil to 3 mil range last week.
• South County—Gilroy reports our local market continues to struggle with a lack of inventory in the lower end.  REO listings are down and multiple offers are the norm.  Hollister reports lower priced homes selling rapidly with multiple offers on many.  Morgan Hill reports the real estate industry seems to be getting positive signals, almost on a daily basis, that the housing market is out of “intensive care” and has entered the “recovery room.” Demand remains high, but more importantly, our Agents are reporting that the buying public deems to be much more optimistic about the economy in general and housing in particular. 

In terms of marketing activity, in general, and with exception of the entry level, most homes are on the market longer with discerning buyers waiting for the optimal home at the optimal price.  A well-priced, well-presented home can still fetch multiple offers, but it’s got to look appealing to the savvy buyers who are doing their homework.  There is no sense in overpricing a listing – a buyer won’t even give a home the time of day if they sense the seller is being unrealistic.  

At the same time, there seems to be no better time to snatch up bargains in the Bay Area at all price points.  In the higher end, we’ve seen cases of five to 10 percent list price reductions in properties that haven’t moved, and a final and acceptable offer coming in a little below that.  That’s not to say buyers should throw out ridiculous numbers.  Certain parts of the Bay Area, after all, have still held their value better than most of the entire country.  Sellers who don’t have to sell can hold firm, but there are others who cannot.  So, while it may take longer to get the buyer and seller to agree to terms, transactions are happening, and with open minds on both sides, we are beginning to see more positive movement for all. ”

“Until next week, 

Rick “

I noticed that the Coast statistics were not indicated in Rick’s update.  Check back tomorrow morning for a complete look at the Coastal Communities in the Monday Morning Market Update.

Click here to download a PDF of the full report, including list and sale prices and days on market.

Pacifica:
Click the images to download the Pacifica PDF report.

El Granada, Half Moon Bay, Montara, Moss Beach:
Click the images to download the Half Moon Bay Area PDF report.

Active Listings continue to stay at the same level week over week. Still, around half of the listings are listed at over 1 Million and over 10% at $600,000 or less. 8 of those 15 listings are located at Martins Beach which seems to be trying to get whatever sales they can before the land lease expires in the next couple of years.
Of the 4 new Pending Sales this week, 1 was listed at over 1Million and 2 were listed under $300,000 and were located at Martins Beach.
Year to Date Sales are most prevalant at $700,000 or less of the 46 homes sold. The high end is showing 7 closing over 1 Million and 6 closing between $900,000 and $1 Million.
The Market is still favoring Buyers who are coming out and looking at open houses.

Active Listings-147 Single Family Homes
13 New Listings this week. Active listings continue to keep balance with pending sales. 71 Active Listings are listed at over $1,000,000.

Pending Sales-26 Single Family Homes with 4 listed for over $1,000,000 and 12 under $700,000.
4 Properties went Sale Pending this week. List prices were 2 under $300,000 from Martins Beach and 1 over 1Million.
46 Homes Closed since January 1, 2009 with only 7 that closed over $1,000,000, 6 listed between $900,000-1 Million and 12 listed at $600,000 or less.

Continuing this year’s trend of a Sellers Market with few Homes for Sale – PACIFICA, CALIFORNIA

Statistics remain consistent another week. With the current number of Active Listings divided by the average number of homes sold YTD, there is a little more than 1 month of inventory of Active listings.

Active Listings-46 Single Family Homes. 12 listed at $900,000 or higher and 21 listed under $600,000. Up a little this week over last week with 8 New Listings this week.

Pending Sales-62 Single Family Homes with 2 listed over 1 Million and 60 listed under $750,000.
11 Properties went Sale Pending this week. 10 were listed under $650,000 and was listed over 1 Million.

107 Closed Sales since January 1, 2009 with 4 listed over $1,000,000 . 77 homes have sold for $600,000 or less. 3 Homes Closed this week.

This week Realogy (Coldwell Banker Residential Brokerage’s parent company) President Richard Smith met with legislators regarding the need for policy initiatives concerning the real estate industry and the economy as a whole.  Specifically, the Business Roundtable (an association of chief executive officers of leading U.S. corporations)— of which Richard is the chair—issued a set of recommendations for the White House and Congress that are aimed at jump starting the housing market in order to stimulate a broader economic recovery.

The Business Roundtable’s recommendations are as follows:

•         Keep mortgage interest rates at historically low levels (below 5 percent) for at least one year;
•         Expand the current First-Time Homebuyer Tax Credit incentive from the lesser of 10 percent of the purchase price of the home or $8,000 to a higher limit of either 10 percent or $15,000 for all homebuyers, remove the income restrictions and include all primary residence purchases for one full year;
•         Conduct a thorough review of current foreclosure mitigation and loan-modification programs in light of rising loan-modification re-default rates;
•         Make permanent the current temporary conforming loan limits; and
•         Continue to review and strengthen government efforts already underway to review and refine mortgage lending practices.

We believe targeted, demand-side solutions—such as the ones Business Roundtable is recommending—will provide a critical next step for a housing recovery that will help create jobs and boost the economy as a whole. To obtain a copy of the Business Roundtable press release and its Housing Working Group’s detailed recommendations, click here. To read an article that appeared in today’s online edition of The Wall Street Journal containing an interview about the Business Roundtable’s recommendations and why they are crucial to jumpstarting the housing market, click here.  We will communicate with you as any legislative opportunities occur for you to contact members of Congress and voice your support—but for now, just know that we appreciate your support and are proud to be part of this initiative.

We took the Great Hwy (this is Hwy.1) and drove north to the parking lot just past the Cliff House Restaurant. Here is where the old Sutro Baths and it’s ruins are located.

These baths were one of the many highlights of San Francisco. The Land’s End Trail and several other trail offshoots make for a wonderful hike with excellent views. The trail ended at the famous Sea Cliff district of mansions where we took surface streets back to our car. Along the way we passed the famous 17th hole at Lincoln Park Golf Course with spectacular views of the Golden Gate Bridge and the Legion of Honor Museum at this end of Golden Gate Park.

Below is what Wikipedia has to say about the Sutro Baths:

Opened to the public as the world’s largest indoor swimming pool establishment. The Baths were built on the sleepy western side of San Francisco by wealthy entrepreneur and former mayor of San Francisco (1894-1896), Adolph Sutro. The vast glass, iron, wood, and reinforced concrete structure was mostly hidden, and filled a small beach inlet below the Cliff House which was also owned by Adolph Sutro at the time. Both the Cliff House and the former Baths site are now a part of the Golden Gate National Recreation Area and operated by the United States National Park Service.

A visitor to the Baths not only had a choice of 7 different swimming pools—one fresh water and six salt water baths ranging in temperatures—but could visit a museum displaying Sutro’s large and varied personal collection of artifacts from his travels, a concert hall, seating for 8,000, and, at one time, an ice skating rink. During high tides, water would flow directly into the pools from the nearby ocean, recycling the 2 million US gallons (7,600 m³) of water in about an hour. During low tides, a powerful turbine water pump, built inside a cave at sea level, could be switched on from a control room and could fill the tanks at a rate of 6,000 US gallons a minute (380 L/s), recycling all the water in five hours.

The baths were once serviced by a rail line, the Ferries and Cliff House Railroad, which ran along the cliffs of Lands End overlooking the Golden Gate. The route ran from the baths to a terminal at California Street and Central Avenue (now Presidio Avenue). The line was filmed in 1902 by Thomas Edison, Inc., available from the Library of Congress online.[2]

The baths struggled for years, mostly due to the very high operating and maintenance costs, and eventually closed. A fire destroyed the building in 1966 shortly after, while in the process of being demolished. All that remains of the site are concrete walls, blocked off stairs and passageways, and a tunnel with a deep crevice in the middle. The Sutro Bath ruins are open to the public, but a warning sign advises strict caution, as visitors have been swept off by large waves and drowned at the site.

Currently, visitors coming to the Sutro Baths from the above parking lot are presented with a sign that describes the history of Sutro Baths starting from its construction and glamorous opening to the public in 1896. Another sign describes the later years of the site’s history up until its demolition and complete destruction by fire in 1966. As one walks up out of the ruins toward the historic Cliff House, home to two full service restaurants: “Sutro’s at the Cliff House” and “The Bistro”, as well as the “Terrace Room”, a private Dining/reception room, one can find other pictures, paintings, and relics from the golden age of Sutro Baths’ functional operation.

Seal Rock is just offshore from the bath ruins.

BTW, the view is great from the restaurant. A good place to stop for lunch/dinner or a drink. After taking this hike, you can see that one of the treasures of the Bay Area is Golden Gate Park. You could walk many paths for short or long hikes all close to our coastal communities with the bonus of being able to pick a great place to get a bite to eat in the City.

Hiking Sutro Baths and Golden Gate Bridge Views from Kathy & Michael Rain on Vimeo.

Active Listings-64 Single Family Homes
8 New Listings this week.
Pending Sales-48 Single Family Homes non with a list price of higher than $817,000.
8 Properties went Sale Pending this week which matched the number of new listings.
54 Closed Sales since January 1, 2009
5 Homes Closed this week.
These 54 homes closed between $179,000 and $899,999. 53 homes sold for under $700,000
Active Listings this week balanced the listings that went sale pending.

HALF MOON BAY through MONTARA, CALIFORNIA

Active Listings-149 Single Family Homes
2 New Listings this week.
Pending Sales-25 Single Family Homes
3 Properties went Sale Pending this week. All had a list price of over $980,000 which is a significant change/increase in price range.
18 Closed Sales since January 1, 2009
1 Homes Closed this week.
These 18 homes closed between $155,000 and $1,150,000.

Final Footprint from Kathy & Michael Rain on Vimeo.

When Suzanne Emerson comes to your home, her services will include evaluating the efficiency of your appliances, lighting, heating and hot water systems, and areas that need to be sealed and/or insulated. Using a “Blower Door” which depressurizes your home, she identifies areas where you are loosing warm air and letting in cold and often toxic air. You then receive a detailed extensive report with measures you can take by doing projects yourself, or by hiring a handyman or contractor for major improvements.

BTW, Suzanne does go where usually only men will venture. She puts on her very glamorous coveralls, goggles, headlamp and face mask to crawl under the house and in the attic. She does bring her camera so you can see what she finds which often includes wildlife and other critters.

Go to www.emersonenvironmental.com for examples of problems and an education on energy, water and conservation. You can reach Emerson Environmental at 650-281-9805 to find out how to reduce the cost of your energy bills.

Emerson Environmental from Kathy & Michael Rain on Vimeo.

Active Listings-77 Single Family Homes
8 New Listing this week.
Pending Sales-38 Single Family Homes
5 Properties went Sale Pending this week.
40 Closed Sales since January 1, 2009
2 Homes Closed this week.
These 40 homes closed between $179,000 and $700,000

HALF MOON BAY through MONTARA, CALIFORNIA

Active Listings-148 Single Family Homes
9 New Listings this week.
Pending Sales-20 Single Family Homes
5 Property went Sale Pending this week
15 Closed Sales since January 1, 2009
2 Homes Closed this week.
These 15 homes closed between $155,000 and $1,150,000.
1-over$1,000,000, 4- $700,000-$1,000,000, 10-under $700,000

Greening projects are often an afterthought. It is easier and most effective to “Green by Design”. No matter how green your design, without a Green Contractor to implement, you can find a traditional contractor falling back on their old, non-green ways. Think about deconstruction in your project. Deconstruction is not only costly to you but to the environment by putting products into landfills that take a long time, if ever, to decompose. Harrell Remodeling removes materials in a way that doesn’t destroy them in the process. They identify the things that can be reused in your project and route salvageable items that can not be reused to a company that will treat them in a use-able product. An example of this is the often leftover small pieces of wood that get thrown away. Instead, these pieces would be crunched for use in composts and ground cover. Even metals in electric and plumbing waste can be melted down and recycled.

Green doesn’t mean unattractive. You’ll see quite the contrary when you got to www.harrell-remodeling.com and find out how beautiful green can be.

Harrell Remodeling from Kathy & Michael Rain on Vimeo.

Active Listings-82 Single Family Homes
5 New Listing this week.
Pending Sales-36 Single Family Homes
6 Properties went Sale Pending this week.
31 Closed Sales since January 1, 2009
2 Homes Closed this week.
These 31 homes closed between $179,000 and $700,000

HALF MOON BAY through MONTARA, CALIFORNIA

Active Listings-150 Single Family Homes
6 New Listings this week.
Pending Sales-11 Single Family Homes
5 Property went Sale Pending this week
11 Closed Sales since January 1, 2009
0 Homes Closed this week.
These 11 homes closed between $155,000 and $999,999.

COME TO THIS FREE FAIR LOCATED AT 248 MAIN ST., HALF MOON BAY

SOLAR UNIVERSE

SOLABRITE-TUBE SKYLIGHTS

SOLAR HOT WATER HEATERS

RADIANT HEAT

TANKLESS HOT WATER HEATERS

HOT WATER RECIRCULATING SYSTEMS

EMERSON ENVIRONMENTAL-ENERGY CONSULTANTS-”WHERE ARE YOU LOOSING ENERGY”

GREEN INTENSION DESIGNS-GLASS TILES, CORK FLOORS, RUG/CARPETING-USING RECYCLED MATERIALS

PAINT WITH NON-TOXIC PAINTS

CARPET CLEANING WITHOUT TOXIC CHEMICALS AND QUICK DRYING TIME

REMODEL GREEN-HARRELL REMODELING

THE SUSTAINABLE CENTER OF SOUTH SAN FRANCISCO-ONE AMAZING PLACE

CAROL TANZI, ASID “THE GODDESS OF GARBAGE”  YOU WON’T BELIEVE THE GREAT INTERIOR DESIGN  as seen on CNN,Rosie O’Donnell Show, Sunset Magazine, The Wall Street Journal, etc.

One, YOU DO NOT NEED TO HIRE A LOAN MODIFICATION COMPANY (3rd Party) TO DO THIS. 

Two, BE THOROUGH FILLING OUT THE INFORMATION SUBMITTING A COMPLETE PACKET THE FIRST TIME.

Revised March 4, 2009

by Susan O’Driscoll, Princeton Capital
 
The Obama Administration unveiled the final details of its “Making Home Affordable Program,” which is designed to help up to 9 million American families refinance or modify their loans to a payment that is affordable now and into the future.
One of the initiatives in this program is aimed at helping struggling homeowners “modify” their loans to avoid foreclosure. Here are some common Questions and Answers about the Modification Initiative in the program.
MODIFICATION INITIATIVE
Who is eligible?
To apply for a Home Affordable Modification, you must:
• Own and currently occupy a one- to four-unit home.
• Have an unpaid principal balance that is equal to or less than $729,750 (for one unit properties).
• Have a loan that was originated before January 1, 2009.
• Have a mortgage payment (including taxes, insurance, and home owners association dues) that is more than 31% of your gross (pre-tax) monthly income.
• And, have a mortgage payment that is no longer affordable, perhaps because of a significant change in income or expenses.
If you answered YES to all of these questions, you may be eligible for the Modification Initiative.
Am I eligible if I missed some mortgage payments?
Yes. If you missed two or more mortgage payments and answered “yes” to the Modification Initiative requirements above, you may be eligible for a loan modification.
Do I need to be behind on my mortgage payments to be eligible for a Home Affordable Modification?
No. Responsible borrowers who are struggling to remain current on their mortgage payments are eligible if they are at risk of imminent default. Examples of being “at risk” include facing a significant increase in your mortgage payment or a reduction in your income. Contact me to discuss your specific situation.
I have a second mortgage. Am I still eligible?
Yes, but only the first mortgage is eligible for a modification.
I have an FHA loan. Can it be modified under this program? Are all loans eligible?
Most conventional loans including prime, subprime, and adjustable loans; loans owned by Fannie Mae and Freddie Mac as well as private lenders; and loans in mortgage backed securities are eligible for a modification. Contact me to discuss your specific situation.
I have a mortgage on a duplex. I live in one unit and rent the other. Will I still be eligible?
Yes. Mortgages on two, three and four unit properties are eligible as long as you live in one unit as your primary residence.
What does the Modification Initiative do?
If you are eligible for this plan and are approved, you will be put on a trial modification for three months at a new interest rate and payment.
If you successfully make the payments and are current at the end of the three-month trial period, your servicer will execute a permanent modification agreement that will lower your interest rate to a fixed rate for five years.
What happens after five years?

Beginning in year six, the rate may increase no more than one percentage point per year until it reaches the “rate cap” in your modification agreement, which is basically the market interest rate on the date the modification is finalized.
That means your rate can never be higher than the market rate on the day your loan is modified. This is great news because rates are currently at historic lows… and you can lock in now.
How low can my interest rate go?
Treasury is providing incentives to your investor to write the interest down as low as 2%, if necessary to get to a payment that you can afford based on your income.
What happens if that is not enough to get to an affordable payment?
If a 2% interest rate is not enough to bring your payment down to 31% of your gross monthly income, your servicer can extend your payment term–for example, give you a 40-year loan rather than a 30-year.
If that is still not sufficient your servicer will defer repayment on a portion of the amount you owe until a later time. This is called a principal forbearance. A portion of the debt could also be forgiven. This is optional on the part of the investor. There is no requirement for principal forgiveness.
Are there any other benefits to this program?
Yes. For every month you make a payment on time, Treasury will pay an incentive that reduces the principal balance on your loan. Over five years the total principal reduction could add up to $5,000.
How much will a modification cost me?
There is no cost to borrowers for a Home Affordable Modification. You will not be asked for any money.
If there are costs associated with the modification–such as payment of back taxes–your servicer will add those costs on to the amount you owe. Your servicer will also forgive any late fees.
Is housing counseling required under this program?
Borrowers are strongly encouraged to contact a HUD-approved housing counselor to help them understand all of their financial options and to create a workable budget plan.
However, housing counseling is only required for borrowers whose total monthly debts are very high in relation to their incomes (55% of your gross monthly income).
If you would like to speak to a housing counselor, call 1-888-995-HOPE (4673).
How do I apply for the Modification Initiative?
If you meet the general eligibility criteria for the program, you should gather the following information:
• Recent pay stubs to help determine your gross (before tax) household income.
• Your most recent income tax return.
• Information about your assets.
• Information about any second mortgage on your house.
• Account balances and minimum monthly payments due on all of your credit cards.
• Account balances and monthly payments on all other debts, such as student loans and car loans.
• A letter describing the circumstances that caused your income to be reduced or expenses to be increased (for example: job loss, divorce, illness, etc.).
Once you have this information, call your mortgage servicer and ask to be considered for a Home Affordable Modification. The number is on your monthly mortgage bill or coupon book.
My loan is scheduled for foreclosure soon. What should I do?
If your mortgage has been scheduled for foreclosure or if you have missed one or more mortgage payments, should contact your servicer immediately.
You may also want contact a HUD-approved housing counselor by calling 1-888-995-HOPE (4673).

Friday, February 13, 2009 – Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®

Dear C.A.R. Member:
Late this evening, the U.S. Senate passed the American Recovery and Reinvestment Act of 2009 by a 60 to 38 vote. Earlier today, the stimulus package passed the U.S. House of Representatives in a 246 to 183 vote. Today’s votes followed several days of negotiations by the House, Senate, and White House, with the final tab for the stimulus bill coming in at $787.2 billion.

On the housing front, the good news is that the legislation resets the conforming loan limit cap at $729,750, up from $625,500. Numerous counties in California experienced a marked decrease in their conforming loan and FHA limits on Jan. 1, and the stimulus bill reinstates 2008 loan limits through Dec. 31, 2009.

The bill also increases the first-time home buyer credit from $7,500 to $8,000, and removes the requirement that the credit be paid back if the buyer stays in the home for at least three years. It also extends the expiration date for the credit from July 1 to Dec. 1, 2009.  Homebuyers must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009, to be eligible for the $8,000 credit.

C.A.R. and NAR have long advocated for higher conforming loan limits. The conforming loan limit provisions and other housing elements in the stimulus package are a step in the right direction for our industry and all Californians.

The stimulus package also contains $308.3 billion in appropriations spending, including $120 billion on infrastructure and science and more than $30 billion on energy-related infrastructure projects. It also allocated an additional $267 billion for direct spending, including increased unemployment benefits and food stamps; and provides $212 billion in tax breaks for individuals and businesses.

Now that the stimulus package is approved and is on its way to President Obama for signature, it is our hope that Congress will turn its attention toward helping homeowners remain in their homes and will take immediate steps directed specifically at stemming the ongoing foreclosure crisis.

We’ll keep you updated on today’s news as more detailed information becomes available.

Sincerely,

James Liptak
2009 President
CALIFORNIA ASSOCIATION OF REALTORS®

For more on the changes in conforming loan limits, check out the following from Inman News:

Highlight: The loan limits for Fannie Mae, Freddie Mac and FHA loan guarantee programs, which were bumped back down to $625,500 in high-cost areas on Jan. 1, were restored to the temporary $729,750 approved by Congress a year ago in the Economic Stimulus Act of 2008.

Fannie and Freddie’s conforming loan limits — which began 2008 at $417,000 — were allowed to stretch to 125 percent of the median home price in high-priced housing markets for much of last year. That was intended to be a temporary measure to address the high cost of non-conforming “jumbo” loans after the collapse of the private-label secondary mortgage market in August 2007.

The $729,750 limit expired on Jan. 1, and Fannie, Freddie and FHA are currently permitted to guarantee loans of up to 115 percent of the median home price in high-cost markets, with a cap of $625,500 (that’s 150 percent of the $417,000 conforming loan limit). HR 1 will restore the limit to 125 percent of median home price in high cost markets, up to $729,750, for the remainder of 2009.

FHA began 2008 with a $200,160 “floor” loan limit in normal markets and a maximum loan limit of $362,790 in high-cost markets. As part of the Economic Stimulus Act, Congress increased FHA’s floor limit to $271,050 in normal markets and the upper limit in high cost areas to $729,750. That move helped increase the Federal Housing Administration’s share of purchase mortgage originations from less than 4 percent in 2006 to 21 percent in September.

Click here for complete story.

Alice Held is an incredible Realtor with ReMax Fine Properties serving Arizona.  You must check out her fabulous site on www. Come2az.com and send all your friends that are planning on going to Arizona and looking at Real Estate.

Ho! Ho! Ho!
Wishing you a Happy Holiday!
If you find or need a moment to relax, please enjoy these sites!
We’ve included fun for adults and a list Just for Kids!
 
A Winter Web Wonderland and fun Christmas stuff, including a virtual Christmas tree has wonderful information about Christmas trees, how they’re grown, harvested, and goes further with Holiday Tips for the festive season.

Don’t bother with the malls this holiday season: they’re crowded; the parking lots are full; and you’ll never find what you’re looking for, anyway. Go instead to your “one-stop shops” for all your holiday purchases: shopping.com , Bizrate, Pricegrabber, Nextag, MySimon, Froogle, Yahoo Shopping, and for last minute shopping, try for gift ideas for everyone on your list.

CNet lists the Top 100 of 2008 and ZDNet has reviews for you, too.
Got that last minute gift to get? Go holiday shopping at these great places! Macy’s, Bloomingdale’s and in spirit of the economy, Wal-Mart and Target are offering some great deals.

If you’re doing Christmas on a Shoestring this year, check out these tips.

From Brooks Brothers to Wal-Mart, there are coupons galore . Instead of downloading and printing them, here you request that they be e-mailed to you. You can also post comments about a product. This site has a good privacy policy.

In all the years that carolers have been singing the 12 Days of Christmas, the price of a partridge in a pear tree has never been higher. Want to see how the prices of the 12 Days of Christmas has escalated since it was written? Check out what A Partridge in a Pear Tree costs these days. PNC Bank did an enlightening Christmas Price Comparison.
 
Add zip to your holiday newsletters with Holiday Fun Facts from the U.S. Census Bureau data collection. You’ll find lots of holiday-related facts and figures from its data collection.
 Visit the famous Tree Lighting Ceremony at Rockefeller Center. Each year designers transform department store windows into miniature holiday worlds attracting passerbys, hoping they’ll shop.

Talking about Christmas trees, this Christmas tree farm has lots to tell you about the care, types, events and just fun! Don’t forget to go down Hwy. 92 for several Xmas Tree farms offering great family fun.
Countdown tells you how much time you have left by the days, days, hours, minutes, seconds to shop and say Merry Christmas from around the globe. If you still don’t have the Christmas spirit, try this Countdown page to check out all the fun things it has to do.

Want to sing along this season? Here’s some good lyrics and midis to get you in the mood.

Need to send a Xmas card real quick? You have a choice in these sites.

And here’s a fun way to decorate your own holiday card … just slide the ornament to the right and see what happens. Then click on the snowflake and watch it snow!

 For a fun page to get you in the mood The Ultimate Christmas page will have entertaining ideas and themes and holiday tips, and Christmas in Cyber Space has a Christian theme. And leave it to How Stuff Works to tell you everything about Christmas “stuff!”

This Christmas tree has the history of the Christmas tree for you.

More interested in egg-nog, elves’ fudge, peanut clusters, fruit cake (the good kind) and Santa’s Punch? You’ll want to head on over to this collection of desserts, candies and drinks gathered together at the rather aptly titled Christmas Recipes. For everything gingerbread… enjoy! According to the Guinness Book of World Records, the largest gingerbread man cookie weighed 372.13 pounds and was 13 feet, 11 inches in height.

So, you now know the difference between a chanterelle and a shiitake mushroom. But, do you know the best way to save your all-important recipes? Tools for the Gourmet will help you. Holiday recipes are Epicurian’s favorites to share. VegSource serves up 3 full-course vegetarian menus for the holidays, each designed to serve 8 people.
Reader’s Digest Holiday Extravaganza has decorating ideas, recipes, and holiday crafts. Get organized for Christmas has many ideas to get ready for the day. And if you’re sending a newsletter this year, here’s a place to find Holiday Clipart.

Start with one mouse a-clicking…you don’t have to be a sleighve to tradition…this site has photos of real-live-reindeer on a America’s Heartland… with lots of Christmas stories and sites, as well as tips to preserve your tree. 

Join PopGun for the neatest Christmas Flash pages he puts the Merry in Merry Christmas!
While you’re in the mood, here’s some easy to sing along Christmas songs.

Just in time for Christmas, Jako Olivier has gathered together the lyrics of the carol Silent Night, Holy Night, as translated into 147 versions in 100 different languages. The Silent Night Museum in Salzburg celebrates the author, Joseph Mohr, and has many renditions as well. 

How to say Merry Christmas in 33 languages and another with even more , including European, Japanese, Korean and more! Christmas in many languages offers just that: Merry Christmas and Happy New Year in many, many languages. See how 30 different countries celebrate Christmas! 

Do you know the Sacred Cities? Every culture has sacred, historic elements. Travel to these sacred cities via the Internet: Banaras the Eternal City, India; Jerusalem, the Holy City, Israel ;Jokhang Temple, Lhasa, Tibet ; Machu Picchu, Peru; Makkah the Blessed, Saudi Arabia; and visit the Splendor of Persia .

Christmas is one of the few holidays that is celebrated worldwide with as many Christmas Traditions as there are countries. Whether the Celebration of Christmas is the Yule Log, or singing carols, many cultures celebrate the season. Traditions Around the World lists religious Christmas traditions.

You’d rather play Spin the Dreidel? Fine. Go ahead. Really, it’s nothing to feel gelt-y about.
Oh, and Happy Hanukkah and Chanukah on the Net , Kanukkah, Khanuka. You get the point, there are a latke of ways to spell it. Celebrations has caloric treasures, yum, gifts, and spiritual perspective. Virtual Jerusalem has photos of all the holy sites.

Kwanza was established in 1966 to provide an opportunity for the African American community to celebrate their heritage. Kwanza is celebrated for 7 days starting on December 26th and ending on January 1st. On December 31st a feast is prepared for family and friends. The History Channel has some wonderful features about the Kwanza holiday.

Ever wonder how Santa does it? Visits every house in just one night? SantaLand will tell you! Santa’s Reindeer Secrets has an excellent Video of Santa’s actual reindeer in Lapland.

NORAD has tracked Santa Claus on his annual delivery travels since 1958. If you want to see up-to-the-minute, high-tech radar tracking of ol’ St. Nick, the NORAD Tracks Santa website is the place to go. And of course NASA will assist Santa weaving in and out of all those satellites and space debris. In addition to Santa-Spotting: Stargazing at Our Challenger Space Center. They have a Christmas Stargazing event.

Curious as to just where in the world Santa’s workshop is? Here’s a satellite image, thanks to NASA. and ESA. Live From the North Pole has a daily reading.

Visit Christmas at White House and see how Deck the Halls look.
 
Wilstar’s Christmas page has been up since, 1995! Check Jerry’s Singing Christmas tree.

Looking for some free Christmas music clips? Christmas Midis brings the holiday to your desktop; Midis in different languages.

Get your snowflakes and reindeer here. Want snow and don’t have it? Find out how to get it on this Snow page . Then Build-A-Snowman online!

Just For Kids:
What do snowmen eat for breakfast? Snowflakes, of course. So you can make your own , more here, and here too! What they’re really made of is here . And if you have a really lot of them, you have snow!
Santa’s Secret Village

The North Pole

Don’t forget to email Santa and read what others have written him.

Check on Santa’s Elves

Christmas Stationery and Screensaver page for Children

Santa’s Page has a Kids Zone and fun pages.

Kids Domain and Christmas Time Together have tons of things to do!
Holiday Lessons about other cultures.
Just for fun Shake-a-globe
Yes, Virginia, there is a Santa Claus from the year 1897.Where is Santa’s factory and what makes it magic?
Finland is where Santa lives. Visit him here! But, guess what? He speaks English! Then visit Virtual Finland and find him there, too! (Aulikki, my friend, is from Finland, and knows Santa very well.)

 Believers click here! Santa’s Elves take you to all kinds of wondrous activities. Check the weather at the North Pole for daily updates! Then pay a virtual visit to Santa in his colorful, snowy town in the North Pole.

Did you know there is a Santa Claus Championship with 100 “Santa” competing? Who will be the best? Check it out here.

Ever wonder what it’s like “down under” where it’s summertime during out wintertime? Christmas in Australia will tell you all about it.

Holiday Home for the Family includes mail to Santa, recipes, movie reviews, crafts, music, and a section Kids Zone with artwork, stories and games. Check out this complete Christmas Recipes Index. Better Homes and Gardens has more for you, too.

It just isn’t Christmas without a Gingerbread house! Ginger Lane to the rescue!

 And if it’s to Grandmother’s house we go, the Family Travel Guide offers up some useful and important information for traveling with kids of all age groups. And TravelSense has lots of good tips, too! TopoZone is a searchable database of the entire United States, from sea to shining sea (and every hill, rock and field in between).
 

Best and warmest wishes to you!!
May you always have an Angel by your side!

This year will certainly go down as one of the more tumultuous our nation has witnessed.  From the rollercoaster ride on Wall Street to the economic woes on Main Street, from the National Economic Stimulus Package to the Emergency Economic Stabilization Act, we’ve all felt the wrath and severity of the 2008 financial crisis.

Housing in Northern California has certainly felt the sting with the most recent figures showing a 40% decline in overall sales price in the Bay Area.  Of course much of that is indicative of the mass amounts of REOs on the market. 44.8% of all existing homes sold in the Bay Area had been foreclosed upon at some point within the last 12 months.  Counties with the highest number of REO sales have seen the deepest drop in Median Price.  Looking at price declines October 2008 over same month last year, Contra Costa County has dropped 46.4%, while San Francisco County, with the smallest price decline for this period, has dropped 10.9%.  It’s pretty simple – banks don’t sell foreclosed homes because they choose to, they list and sell because they must.  In our higher-end communities, we’re seeing fewer and fewer homes list and sell because the majority of homeowners don’t need to.
Here’s a look at the breakdown-

• East Bay—Berkeley is reporting that there are less and less people on broker’s tour although a few new Berkeley listings got 75-100 visitors.  Agents are saying that the rumor of interest rates in the fours has put more buyers back on the fence.  Castro Valley notes that the market remains good.  We have deals processing and we have not felt the holiday slump just yet.  Livermore notes that inventory of active listings in the past couple of weeks has declined anywhere from 10% to 20% in Pleasanton, Livermore and Dublin.  Total active listings on the market are at their lowest levels in the Tri-Valley in 2008.  Total number of pending sales in each of the three cities in the Tri-Valley are down about 10% from December 1, 2008.  REO sales continue to dominate the market.  Oakland notes that listings have slowed down in our primary market.  REOs seem to be slowing also.  Our inventory is dropping as it is absorbed or expires.  Sales seem steady so far for the month but it definitely is feeling slower.  Our Walnut Creek office notes that activity is slow in every area.  Prices are continuing to decline in certain areas of Contra Costa County.  Inventory is seasonably low.  Orinda notes that things have surprisingly picked up a bit.  We have had an increase in sales and listings. 
• Monterey County—The market continues on at its slow pace, however we continue to write offers and open escrows.  We are noticing an increasing number of expired listings but that generally happens in December anyway.
• North Bay— Southern Marin had its busiest month in quite some time. Our San Rafael office notes that we are seeing an increase of investors and first time home buyers writing offers on the low end of the market.  Our Sonoma County offices report that the entry-level REO market continues to drive sales and the market above the $500,000 mark is stagnant. 
• Peninsula—Our Burlingame office notes that buyers are paying attention to the media news with regard to interest rates and have a positive feeling about the market and that it may be time to buy.  Open houses reflected this attitude at all price points.  Half Moon Bay concurs noting that this was a busy week for sales (four lots and two homes).  The coastal inventory of residential units is down to 128, about 10% lower than during “typical” years at this time.  Our Menlo Park El Camino office notes that open houses were about the same last week with Agents feeling some buyers are finally ready to make a move—just wanting to find that perfect property.
• San Francisco—Our Lombard office reports that REOS typically receive multiple offers here but now are taking a couple of weeks to sell, not a couple of days.  The high end remains slow.  Sunday traffic very unpredictable ranging from 0 to well over 100 people through an open house.  The Market Street office notes that Agents are getting listings ready for January and trying to sit buyers down to write offers to at least start the process of negotiating. 
• Santa Cruz County—The median price is still dropping.  REO properties are a significant part of the sales which are occurring in Watsonville and San Lorenzo Valley.  The upper-end is expected to lag when lending on jumbo loans is limited.
• Silicon Valley—Our Cupertino Stevens Creek office notes that the market continues to slow and sellers are holding their homes off the market for the holidays.  Buyers continue to circle like sharks looking for the deals.  Our Los Altos First Street office points out that the high-end is still very low.  Santa Clara County in total only had 12 sales reported on the MLS during November for homes listed over $2 million.  Our San Jose Main office notes that REO continue to receive multiple offers.  The office did have one Rose Garden listing at $1.2 million that had a large price reduction and then receive two offers.  Our San Jose Will Glen office, like many others, is noting that buyers remain cautious and we are seeing sporadic interest in open houses.
• South County—Our Hollister office points out that REOs continue to drive much of this market with multiple offers becoming the norm on such properties.  We are seeing the usual slow down due to the holidays.    Our Morgan Hill office notes that historically the month of December has buyers concentrating on the holidays, family and shopping but this year in South County, things are different.  We are seeing buyers who seem anxious to take advantage of low interest rates and great home prices.  Agents are reporting that open houses are well-attended and buyers seem ready to enter the market.
Next week DataQuick News is expected to release its November figures.  In my final Weekly Market Watch of ’08, I will recap the report and include the most recent market stats.

Until then, I’d like to leave you with a few interesting stories from the week:

• Pending Home Sales Holding in Stable Range (NAR) http://www.realtor.org/press_room/news_releases/2008/phs_holding_in_stable_range?LID=RONav0021
• Foreclosure filings down (CNNMoney.com)  http://money.cnn.com/2008/12/11/real_estate/foreclosures_sink/index.htm?postversion=2008121104
• Top 10 Things You Should Expect from the Housing Marketing in 2009 (Yahoo Finance) http://biz.yahoo.com/bw/081210/20081210005036.html?.v=1 
• Long-Term Numbers Tell A Different Story (Washington Post) http://www.washingtonpost.com/wp-dyn/content/article/2008/12/05/AR2008120501625.html?nav=rss_opinion%2Fcolumns

Have a great week,
Rick
 
Rick Turley
President, San Francisco/Peninsula/North Bay
Coldwell Banker Residential Brokerage
tel 415.437.4505
rturley@cbnorcal.com

Home Sales Are Up…But Can Someone Please Tell the Stock Market? Week of Oct 13-19
It was an interesting week in news.  More specifically, it was a great week in news for real estate activity—but in its third consecutive week 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 – 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.”

Both the prices and sales from NAR and DataQuick’s reports reflect the dominance of foreclosure sales, which according to Data Quick accounted for 42% of all homes that traded hands in Contra Costa, Napa, Sonoma and Solano counties.  Of course not all markets are being hit as heavily by foreclosures.  San Francisco remains the lowest Bay Area county with just 9.5% of homes sold in foreclosure.  Second was Marin at 14.9%.

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.

The volatility on Wall Street is causing concern for many of our local consumers. 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 a buyer back out of a contract in fear of what may happen—even if they were having no problem with obtaining 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.  Despite the turmoil in credit markets, home mortgages are available, and at very attractive interest rates.  Couple that with the fact that the majority of the communities around San Francisco are amazingly resilient in economic downturns.  That’s true because we have very limited land, and we are in one of the most desirable locations in the world.  It’s why we are still seeing some multiple offers each week.

Let’s take a look at this week in real estate:

• East Bay—With 37.9% of home sales in Alameda County being foreclosures, and 58.7% in Contra Costa County, it is no secret that the East Bay real estate market is being driven by the bank owned market.  This week we get the feeling that a lot of people are dizzy from Wall Street’s rollercoaster as we saw fewer walk-ins and fewer floor calls.  Castro Valley saw a slower week with listing inventory starting to pick up.  Prices are stable although we are beginning to see some price drops in the mid-ranged properties ($500-700K) in Castro Valley.  Fremont shared that the REO market is still hot and that we’re starting to see the Fall slow down which is typical for this time of year.
• Monterey County—No information reported this week.
• North Bay—In Sonoma County, the last two weeks, according to our Petaluma office, listing inventory has come to a literal stand still.  Sales activity is good but we are having challenges with stock market funds affecting escrows.  Santa Rosa concurs noting that we are very active under $500,000 with multiple offers common.  The Santa Rosa office also reported success in the high-end this week with two of their high-end properties going into escrow this week.  In Marin County our Greenbrae Manager points out, “For every Agent who tells me things are slow, another is fielding multiple offers or participating in a highly contested bid.  Sales continue to happen though not at the same pace as spring.”  Nearby San Rafael notes that it continues to see more cash buyers.  One property listed under market value in a good location had 12 offers on it and went into contract $200,000 over asking.
• Peninsula—Another week of mixed stories.  Some sellers are taking their properties off the market because the market won’t bear what they want to realize in the sale.  Smart buyers who have cash are making some very good buys.  We had one Burlingame condo sell for $100,000 under asking to an all cash buyer.  In Half Moon Bay, more sales than usual were ratified over this busy weekend and one even had two offers, selling over its listed price of $1,350,000.  We also had two cash deals in excess of $1,500,000 supporting the fact that high-end cash customers recognize good value and have confidence in today’s real estate market.  Palo Alto office reports that activity at open houses in surrounding areas is relatively slow, while Palo Alto itself—with its lack of inventory—is still strong with higher activity.
• San Francisco-   Open houses appear to be filled with real buyers but they are slower to write offers and are being very selective about the properties that they are willing to write on.  Our Noriega office had one fixer upper in Sunset that had 10 offers.  The listing went well over $459,000.  The same office was involved in three other multiple offer situations this week.  The heavier activity this week has definitely been in the lower price points.
• Santa Cruz County—No information reported this week.
• 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.

On a final note, I’ll share with you a comment released by NAR this week— regarding 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.”   You can be certain that once the national economy begins a turnaround, our San Francisco Bay Area will be one of the first regions in the nation to get firm on housing prices, and begin the upward climb of appreciation as it does in every cycle.

Update courtesy Rick Turley,  President, San Francisco/Peninsula/North Bay Coldwell Banker Residential Brokerage, http://www.cbnorcal.com

Susan McHan, a colleague of Andy’s (CEO of Opes Advisors) recently appeared on ABC7′s The View from the Bay to discuss the current difficulties and the government’s moves to address them.

View the video here.

Watching the recent financial turmoil of Fannie Mae, Freddie Mac, AIG, Lehman Brothers and a few others has been unsettling, to say the least. On Friday President Bush proposed a comprehensive approach to stabilize the credit markets, including $700B for the purchase of existing mortgages from banks and other financial institutions, in an effort to shore up the economy. Additionally, the Federal Reserve and central banks worldwide have rapidly and radically expanded liquidity of the money supply. These actions are sending a powerful signal to investors in our financial markets that liquidity is not a problem!

There are now approximately 5 million homeowners delinquent on their mortgages or in foreclosure. With the government takeover of the largest holder of home mortgages, we (the U.S. taxpayers) now own Fannie and Freddie. In order to reach a stable housing market, lending at reasonable rates will most likely continue through 2009.

Is this the end of the crisis? No. But it is likely the beginning of the end.

The stock, bond and credit markets will remain volatile as the implementation of the government bailout is specified, agreed to by congress and acted upon. These actions are necessary to resolve the current financial crisis and begin building toward a stable and prosperous financial future.

It’s always interesting to learn the views of other real estate and mortgage professionals that are in the trenches of this challenging market. Learn more about Andy Block here.

http://online.wsj.com/article/SB121865515167837815.html?mod=djemWMP