- Solds:  Research homes that have recently sold in your area that are similar to yours.  Seeing what other properties are selling for will give you a good idea of your homes’ value.

- Expireds:  Many listings are put on the market at the top asking price or even overpriced.  You will see that these homes will sit on the market and will eventually expire as there are not buyers willing to pay the asking price.  Looking at these listings will give you an idea of what buyers are willing or not willing to spend.

- Currents:  How does your property compare with current homes on the market?  It’s a buyers market so they, in effect, determine the value of your home.

- Value Boosters:  These include any maintenance or improvements that will boost the value of your home.  Keep an open mind to change as buyers preferences may not be your preferences. These changes to your home can change a buyers’ mind.

As there are many factors that play into a home’s value, determining what your home is worth can be tricky.  If you are starting to look into selling your home and have questions, we’d love to help!  We can give you the most up to date information on the San Mateo Coast market and will assist you from the beginning to the end of the home selling process.   We look forward to hearing from you!

Kathy & Michael Rain
Your San Mateo Coastal Real Estate Experts

San Mateo Coastal Real Estate
View San Mateo Coastal Listings
Visit Our Website
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1. Close on your home purchase between November 7, 2009 and April 30, 2010, or have a binding written contract by April 30, 2010 and close by July 1, 2010.
2.  Decide whether to: 

• apply the credit to your 2009 tax return, filed on or before April 15, 2010;
•  file an amended 2009 return; or, 
• apply the credit on your 2010 return, filed on or before April 15, 2011.

1. Attach documentation of purchase to your return.

When to Apply the Credit

Buyers purchasing homes on or before December 31, 2009 may claim the credit on their 2009 tax returns.

Buyers purchasing in 2010 will have the option to:

•  Claim the credit on their 2009 return, even if the purchase is completed after December 31, 2009;
•  File an amended return for 2009 if their purchase is completed after April 15, 2010; or,
•  Claim the credit on their 2010 tax returns.

Applying the Credit to Your 2009 Taxes

You will need to do three things to claim the credit on your 2009 tax return:

1. Fill out Form 5405 to determine the amount of your available credit;
2. Apply the credit when you file your 2009 tax return or file an amended return;
3. Attach documentation of purchase to your return or amended return

Applying the Home Buyer Tax Credit to Your 2009 Return

To claim the credit as part of your 2009 return, you will need: The standard Form 1040 and Form 5405 for the home buyer tax credit.

1. First begin Form 1040.
2. Be sure to take note of your adjusted gross income, which you enter on lines 37 of the form. Form 5405 actually requires you to note your modified adjusted gross income, but that affects few people, so most will just use their adjusted gross income.
3. When you come to Line 69 you’ll be asked to enter your tax credit amount. To do that, you’ll need to first complete Form 5405. 
4. Once you complete Form 5405, enter the amount on Line 69, then complete your return.
5. Attach Form 5405 to your return.
6. Be sure to contact your tax professional for specific instructions and advice.

Collecting Your Refund

Any refund for which you qualify will be sent to you.

The residents of this great area pride themselves in all that is offered in each of its’ towns along the coast.  One of the ways to ensure we continue to not only maintain, but enlarge our appeal is through The San Mateo County Resource Conservation Districts’ Blue Circle meeting.  All are invited to attend the upcoming meeting on Wednesday, March 24 from 3:30-5:30pm in Moss Beach.  This informal meeting will go over the various aspects of Geotourism in San Mateo Coast.

Geotourism is ”best practice” tourism that sustains or enhances the geographical character of a place, such as its culture, environment , heritage, and the well-being of its residents.  The Blue Circle Community is designed to be a place to share information, ideas and resources to enhance the natural resource management, stewardship and education of the San Mateo Coast.  Learn more and rsvp to attend this event at coastsider.com.

We enjoy providing the San Mateo Coast about current events and news that affects our community.  If you have any questions regarding the San Mateo Coast or are hoping to make this your permanent home, feel free to contact us!  We look forward to talking with you!

Kathy & Michael Rain
Your San Mateo Coastal Real Estate Experts

San Mateo Coastal Real Estate
View San Mateo Coastal Listings
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The San Mateo Coast climate is ideal for gardening and this works in our favor as we consider the use of medicinal herbs.  If you’re not familiar with the herbs and their uses, there is a class, Herbal Basics of Herbal Garden Medicine, taking place on Sunday, March 21 at Pacifica Gardens.

This class, taught by Dina Ayala, will cover infusions, decoctions and herbal teas.  Learn which herb can cure your ailments such as stress and insomnia! The medicine you need can be grown right in your own backyard and this class will help show you how.   You will also be able to taste some of the herbal remedies and learn how to make a few of them.  Learn more here.

It’s important that we take of the environment around us and our health, and this is a natural way to do both!  One of the things we enjoy about living in the San Mateo Coastal area is being presented with opportunities such as this year round.  If you are interested in learning more about this great area or have any questions, please let us know!  We’d be happy to help you in any way we can.

Kathy & Michael Rain
Your San Mateo Coastal Real Estate Experts

San Mateo Coastal Real Estate
View San Mateo Coastal Listings
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** Open House – Saturday, 2/27, 3/6 & 3/13 from 1:30-4:30pm **
Sunday, 2/28 & 3/7 from 1:30-4:30pm

Enjoy the expansive views from this Tahoe-inspired home in Montara.  This four bedroom, three bathroom home is set on an extra deep lot which features delightful gardens.  One of the many highlights of this home is wood beamed cathedral ceilings which create an environment of spaciousness plus the open and light floorplan.

A wall of oversized Pella windows in the great room allows natural lighting to come streaming throughout the main living area. Feel the tranquillity of the great room when you take in the tree lined views and Montara Mountains. The brick fireplace with gas insert will be a favorite place to cozy up on cooler evenings. Large sliding glass doors grant access to the outside front deck.

Conveniently located just off the great room is the open kitchen featuring stainless steel appliances, enough counter space for a cooking party plus a breakfast bar. An oversized pantry and Viking stove are added bonuses while the view from the kitchen makes cooking a joyful event. The cathedral ceilings continue into the kitchen and family room as well as the abundance of windows and natural lighting. Dining can also be enjoyed in this space and with access to the upper back deck; entertaining is easy as the deck has existing water for your potted garden and natural gas for your BBQ.

The upstairs bedroom offers a cathedral ceiling echoing those found throughout the home and is highlighted by its own sliding glass door and deck access. Lovely flooring and deck access are among the favorite features of the second bedroom, while the third bedroom is ideal for a home office. The spacious Master Bedroom has a wall of closets and sliding door to the wrap around deck and inviting backyard. An additional full bathroom and indoor laundry room with extra storage offer the convenience you desire.

Outside one will find the large, deep lot and garden environment to be relaxing and a great space for entertaining. This home has the open floor plan and views that anyone will be sure to appreciate!

Asking Price: $775,000
MLS: 81008102
Sq. Feet: 2400
Lot Size: 6250 sq ft
Bedrooms: 4
Bathrooms: 3
# of Floors: 2
Garage Size: 2
Subdivision: Montara
Year Built: 1984

Kathy & Michael Rain
Your San Mateo Coastal Real Estate Experts

San Mateo Coastal Real Estate
View San Mateo Coastal Listings
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First impressions are vital in the sale of your home, and we want to make sure yours make a positive lasting first impression!  By creating beautiful curb appeal, buyers will get a sense that you care for your property and have the same respect and care for your home.  The lawn and exterior sets the tone for how the buyers will view your home- making it a very important aspect of the home sale.

Below are a few landscaping tips that will “wow” buyers.  They may not even realize why they are drawn to your home, but the goal is that they view your home as set apart from all other properties they’ve seen.

1.  Add splashes of color – A landscape should provide a new display of colors, textures, and fragrances.

2. Size trees and shrubs to scale – These should be planted in the right scale for the house so that they don’t block windows, doors, and other architectural features on the home’s facade.

3. Maintain a perfect lawn – A velvety green lawn demonstrates tender loving care, so be sure sellers’ homes don’t have brown spots.

4. Light up the outside – Good illumination allows buyers to see a home at night and adds drama.

5. Let them hear water – The sound of water appeals to buyers, and you shouldn’t just reserve this for your backyard.

6. Use decorative architectural elements – A new mailbox, planted window boxes, and a low fence wrapped in potato vines add cachet.  Just don’t overdo!

View the full article 6 Landscaping Tricks That Wow Buyers.

Start planning now how you will spruce up your San Mateo Coastal area home as the warmer air begins to blow Spring our way!  If you have planned ahead- this will make improvements more efficient allowing your home to be placed on the market more quickly.  We have years of experience in the San Mateo Coastal real estate market and know that we can make your home sale a quick and stress-free process!  Finding a new Coastal home is something we’re passionate about helping buyers with as we have a strong base of properties for sale and a solid network in the San Mateo market.  Contact us today to set up a meeting!

Kathy & Michael Rain
Your San Mateo Coastal Real Estate Experts

San Mateo Coastal Real Estate
View San Mateo Coastal Listings
Visit Our Website
Email Us

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

San Mateo Coastal Real Estate
View San Mateo Coastal Listings
Visit My Website
Email Me

** Open House – Saturday 2/20 & 2/27 from 1:30 – 4:30pm & Sunday 2/21 & 2/28 from 1:30 – 4:30pm **

Enjoy the coastal area of Montara in your very own ranch style home! This three bedroom, two bathroom residence is updated and ready for you to move right in! The charming living room with pellet stove insert in the brick fireplace, hardwood flooring, recessed lighting, and sliders that lead to the extra deep backyard, is a great place to entertain your loved ones. Cook with ease in the bright and airy kitchen featuring ample cabinetry space and tile countertops. Enjoy meals in the eating area with lots of natural lighting. This room also conveniently opens to the living room and grants access to the backyard!

All three bedrooms feature hardwood flooring and neutral décor. Two renovated bathrooms, and an oversized, deep fenced-in backyard leaves you plenty of room for endless possibilities. Updates of the home include: refinished hardwood flooring, dual pane windows and new water heater. Contact us today for a private viewing of this home!

Asking Price: $669,000
MLS: 81007023
Sq. Feet: 1,270
Lot Size: 50′ x 125′
Bedrooms: 3
Bathrooms: 2
# of Floors: 1
Garage Size: 2
Subdivision: Montara
Year Built: 1963

In late January the Federal Reserve met and confirmed that the Mortgage Backed Securities (MBS) purchase program will end on March 31, 2010. We expect rates to begin moving up as a result of this–what is uncertain is how quickly and how much. Most experts place the rate change value at 100 bps difference, or 1% higher mortgage interest rates. Our best guess at the outlook places rates at the beginning of the year (now) in the low 5’s and ending in high 5’s to low 6’s. However, expect volatile cycles.

The wild card with regard to short term interest rates (which would affect prime rates, and adjustable rate mortgages) is any change in the Fed’s pre-commitment language which, as of their meeting, is currently committed to keeping the Federal Funds Rate exceptionally low for an “extended period.”

We don’t expect the Fed to raise short term rates any time in 2010, but long before the Federal Open Market Committee (FOMC) actually does the deed, it will have to change its language. That could very well happen in 2010, and there is genuine uncertainty over how quickly and strongly the market will anticipate a tightening process.

Keep in mind that rates are currently about 1% lower than they would be if the Fed weren’t buying all those Mortgage Backed Securities. This means when that 1% suppression is no longer in effect, it would cost about $21,000 to buy the rate down by that 1% on a $700k mortgage. When you combine the 1% lower rate with the tax credit, you see that homebuyers stand to gain between $27,500 and $29,000 on a home in the $800,000 or under price range. That’s a big incentive to act now, while both incentives still exist.

Andy Block
Mortgage Advisor & Financial Advisor
Reverse Mortgage Specialist
DRE License 01096311
Opes Advisors, Inc.
400 S. El Camino Real, Ste. 250
Ph: 650.931.0605
San Mateo, CA 94402
www.opesadvisors.com
OPES/ope’s • n./latin for wealth

_____________________________________________________

We’re here to help with your Real Estate needs.  Let us know how we can best serve you!

Kathy & Michael Rain
Your San Mateo Coastal Real Estate Expert

San Mateo Coastal Real Estate
View San Mateo Coastal Listings
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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
View San Mateo Coastal Listings
Visit My Website
Email Me

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

San Mateo Coastal Real Estate
View San Mateo Coastal Listings
Visit My Website
Email Me

* *  Join Us at an Open House, each Sunday in February from 1:30PM to 4:30PM!  * *

Have you ever dreamed of living in a home with ocean views located in a quaint beach town? This dream home is now available and in move-in condition! Imagine waking up to the sounds of waves crashing or watching the sunset over the ocean while sitting peacefully in your home. Only thirty miles from San Francisco in the quiet town of Montara, this three bedroom, two bathroom home is far enough away to enjoy solitude but close enough to take advantage of all that the community has to offer!

Lovingly maintained and beautifully remodeled throughout, this open floor plan home is only a short distance to the beach and boasts unique features. Entering the foyer, you will notice the oak hardwood flooring and crown molding that shows the great attention to detail. These features continue into the living room where you will find the large picture window affords scenic views while the stunning brick fireplace adds a touch of warmth. The gourmet kitchen will be a favorite place to gather and enjoy the art of cooking while taking in ocean views. Travertine flooring, granite countertops and maple cabinetry are accented by top of the line stainless steel appliances. Viking dual ovens and cooktop range, a sub-zero refrigerator, wine refrigerator and stunning Franke kitchen deep sink are among the many features that make this an ideal chef’s kitchen. Host dinner parties in the dining area which conveniently opens to the kitchen and boasts a chandelier.

Stunning master bedroom suite acts as a private getaway with its own gas fireplace, an art niche situated in the corner of the room and a large walk-in closet. French doors lead out onto the back deck and manicured yard. The spa-inspired master bathroom comes complete with marble flooring, gorgeous soaking tub and granite vanity. Two additional rooms offer plenty of space for a large family or weekend guests and boast closet organizers. The guest bathroom mimics the master bathrooms’ marble flooring and granite vanity.

This homes’ unique features are endless and are what make this such a desirable place to live. Coming home will be like a vacation with the serene setting and access to many outdoor activities such as hiking, kayaking, sailing and surfing as well as close proximity to the Fitzgerald Marine Reserve. Truly a masterpiece, this home is a must-see!

Asking Price: $950,000
MLS: 81005605
Sq. Feet: 2,000
Lot Size: 5,000 Sq. Ft.
Bedrooms: 3
Bathrooms: 2.5
# of Floors:  2
Garage Size: 2 Car Attached
Year Built:  1976

“What’s happening? First-time buyers are rushing to take advantage of the federal tax credit before it expires this spring. Unfortunately, we aren’t seeing a commensurate number of sellers bringing homes to the market to capitalize on this. There are inventory shortages throughout the Bay Area. Open homes are attracting a flood of serious buyers. The result is that attractive, well-priced homes in good neighborhoods are getting lots of interest and, in some cases, multiple offers. 

Without as much competition for buyer’s attention, a well-maintained home could stand out like a redwood tree in a desert. This may not last for long as more homes come on the market in the weeks and months ahead (don’t forget the old adage that people start listing homes after the Super Bowl).

So by and large, it’s pretty much a conversation about inventory when you talk about our Bay Area real estate market.  Even the luxury market, while admittedly slower than lower price points, has inventories trending down.  Take San Francisco, for example, for homes over $2 million.  The luxury market finished out December 2009 with a 6 months supply of inventory – compared to 10 months supply for the same period in 2008.  You’ll find similar trends in the high end in many of our communities in Silicon Valley, Peninsula, Marin, and the East Bay.  Accuracy in pricing and attention to detail in showing condition remains critical in the luxury markets, but sales activity is picking up and inventories are going down.”  by Rick Turley, President, Coldwell Banker San Francisco Bay Area

 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!

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

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

“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.

Spacious and open floor-plan with 3 fireplaces, skylights, cathedral ceilings, ground floor bedroom, back bedroom with “secret” door to large attic. Master suite with fireplace and jetted tub. Possible second upstairs master with bath access and view deck.  Eat-in kitchen with island cook top, breakfast bar, garden window and family room/backyard access. Separate dining room with 2 story ceiling. Garage with extra storage. This home is for the discriminating buyer. 7.7 gpm well. All inspections have been done and work completed. Newly painted inside and out.

Asking Price:  799,000
MLS:  80957027

Open houses this week have finally slowed down.  Maybe it was the rain or just the time to get the Holiday shopping completed.  The market is still favoring Buyers. 

Pacifica had 8 new listings this week with 2 listed for over a Million dollars.  Brings the total of active listings to 47.  6 properties went sale pending this week.   All were listed at $698,000 or less.  There are 45 pendings.   6 new closings this week, all listed under $800,000,  brings the total closed homes YTD to 226.  Still a sellers market with low home inventory.

Next week will be our last week to report 2009 sales.    We don’t see any surprises before the end of the year.  The market has reacted to the Holiday Season.

Still a Buyers Market – HALF MOON BAY through MONTARA,CALIFORNIA with just under half of the listings listed at over 1 Million. The $900,000  plus price range is finally seeing activity with 25% of sales year to date.

Active Listings-106 Single Family Homes. 45  listed over $1,00,000, 18 listed under $600,000. 6 New Listings this week with 4 having been on the market and now relisted and  1 over $1Million.
Pending Sales-25 with 9 listed under $600,000 and 8 over $900,000.  4 pending sales this week with 1 over 1Million.
124 Homes Closed since January 1, 2009 with  32 that closed under $600,000 and 32 over $900,000.  3 closings this week with 1 listed over 2 Million.

PACIFICA, CALIFORNIA
With YTD sales of 224 and active listing at 49, Pacifica continues to be a Seller’s market.

Active Listings-49 Single Family Homes. 10 listed over $900,000, 21  listed under $600,000.  7 new listings with 4 under $600,000 and 1 over 1 Million.
Pending Sales-47 with 20 listed under $500,000. 3 new Pendings this week.
224 Homes Closed since January 1, 2009 with  83 that closed under $500,000 and 73 between $500,000- $600,000.  2 closings 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

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 with 20% of sales in that price range.

Active Listings-108 Single Family Homes. 44  listed over $1,00,000, 18 listed under $600,000
Pending Sales-24 with 11 listed under $700,000 and 7 over $1 Million.  No new pending sales this week.
121 Homes Closed since January 1, 2009 with  31 that closed under $600,000 and 21 over 1 Million.

PACIFICA, CALIFORNIA
With YTD sales of 219 and active listing at 46, Pacifica continues to be a Seller’s market.

Active Listings-46 Single Family Homes. 9 listed over $900,000, 19  listed under $600,000
Pending Sales-47 with 20 listed under $500,000. 5 new Pendings this week all under $700,000.
219 Homes Closed since January 1, 2009 with  82 that closed under $500,000 and 72 between $500,000- $600,000.  One  closing 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

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 with 20% of sales in that price range.

Active Listings-108 Single Family Homes. 46  listed over $1,00,000, 17 listed under $600,000
Pending Sales-24 with 11 listed under $700,000 and 7 over $1 Million.
121 Homes Closed since January 1, 2009 with  31 that closed under $600,000 and 21 over 1 Million.

PACIFICA, CALIFORNIA
With YTD sales of 214 and active listing at 50, Pacifica continues to be a Seller’s market.

Active Listings-50 Single Family Homes. 10 listed over $900,000, 21 listed under $600,000
Pending Sales-44 with 18 listed under $500,000. 6 new Pendings this week. 3 under $500,000
217 Homes Closed since January 1, 2009 with  82 that closed under $500,000 and 71 between $500,000- $600,000.  No Closings 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

See more property views here: www.151sheltercove.info

Enter into the warm and cozy living room with a red brick wood burning fireplace flanked by built-in bookcases. Step into the gourmet kitchen with granite counters, tumbled stone backsplash with granite accents, extra deep/wide quartz composite sink, instant hot water dispenser, new dishwasher, maple cabinets, breakfast counter, solar tube skylight, recessed lights, dining area with Infinite speakers, and maple laminate flooring with access to the level, fenced backyard.

Off the kitchen dining area are sliding doors to your deck and backyard. Currently the backyard has grown organic edibles in raised beds, barrels and pots. The front yard has organically grown blueberry bushes, Meyer lemon, and barrels with organic edibles. The rest of both yards are low maintenance with salt & pepper pebbles and small river rock. The backyard is a perfect setting for a fire-pit sitting area, children’s play set, trampoline, hot tub with gazebo, or ?. Around the corner of the deck is a spacious sauna, outdoor shower and a storage shed for bikes, surf boards and lawn supplies.

There are several options for using this versatile floor plan. There are two Master Bedroom options determined by which floor of the house you prefer and size of the room. Both Master Bedrooms have remodeled, very nice bathrooms. The upstairs bedroom is approximately 20 x 19 with a cathedral ceiling. The closet has a 12 ft interior height for extra storage and a wall of mirrored doors. The front facing wall has a built-in desk and bookshelves surrounding a picture window. This has been a great place to home school and is now part of a Master Bedroom retreat where activities and sewing projects take place. This room is so spacious it also has an additional office nook. This upstairs room will allow you to choose whether you use it a Master Bedroom, Family Room, Guest Suite, Office, Music, Hobby room or ? The remodeled upstairs bathroom has radiant heated floor, Hans Grohe fixtures with a luxurious shower system that includes an adjustable-height shower head and body sprays. The main floor Master Bedroom has a pocket door to access the remodeled bathroom.

The house is in excellent condition, newly painted, and has been loving cared for. See the entire list of quality upgrades. The Clipper Ridge Subdivision borders open space and was repaved 4 years ago as well as upgrading the play structures. The association fee is just $88/year. The neighborhood park is a perfect place for pets and kids. The owners have loved living in this home and in the neighborhood. They can see mountains looking out the living room window and reminisce on the great hikes they have taken there. Just a short distance is the Harbor area with shops, restaurants, ocean activities and the start of the Coastal Trail.

Asking Price: $629,000
MLS: 80953771
Sq. Feet: 1440
Lot Size: 5115
Bedrooms:  3
Bathrooms:  2
# of Floors:  2
Garage Size:  2
Subdivision:  Clipper Ridge
Year Built:  1969

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-122 Single Family Homes. 53 listed over 1 Million, 25 listed under $600,000
Pending Sales-30 with 8 listed under $600,000 and 9 listed over $1,000,000.
109 Homes Closed since January 1, 2009 with only 18 that closed over $1,000,000 and 29 under $600,000

PACIFICA, CALIFORNIA
With YTD sales of 214 and active listing at 60, Pacifica continues to be a Seller’s market.

Active Listings-60 Single Family Homes. 11 listed at $900,000 or higher and 27 listed under $600,000.
Pending Sales-34 Single Family Homes with 13 listed under $500,000 and 4 over.  6 Properties went Sale Pending this week with listed prices from $430 to $718,000.
214 Closed Sales since January 1, 2009 with 9 that were listed for over $1,000,000.  82 sales were from homes listed at $500,000 or less. 5 new sales this week betweem $398,000 and $750,000.

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

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-118 Single Family Homes. 51 listed over 1 Million, 13 listed at $900,000 to 1 Million.
Pending Sales-36 with 14 listed under $700,000 and 12 listed over $900,000.
101 Homes Closed since January 1, 2009 with only 16 that closed over $1,000,000 and 10 between $900,000 and 1 Million.

PACIFICA, CALIFORNIA
With YTD sales of 205 and active listing at 54, Pacifica continues to be a Seller’s market.

Active Listings-54 Single Family Homes. 11 listed at $900,000 or higher and 20 listed under $600,000.
Pending Sales-42 Single Family Homes with 38 listed under $700,000 and 4 over.  5 Properties went Sale Pending this week with listed prices from $499 to $848,000.
205 Closed Sales since January 1, 2009 with 9 that were listed for over $1,000,000.  80 sales were from homes listed at $500,000 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

“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-26-2009-wk43/ http://www.coastsidelife.com/2009/10/monday-morning-market-update-october-26-2009-wk43/#comments Mon, 26 Oct 2009 19:27:45 +0000 Kathy Rain http://www.coastsidelife.com/?p=541 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-121 Single Family Homes. 52 listed over 1 Million, 15 listed at $900,000 to 1 Million.
Pending Sales-36 with 14 listed under $700,000 and 10 listed over 1Million
99 Homes Closed since January 1, 2009 with only 16 that closed over $1,000,000 and 10 between $900,000 and 1 Million.

PACIFICA, CALIFORNIA
With YTD sales of 196 and active listing at 59, Pacifica continues to be a Seller’s market.

Active Listings-59 Single Family Homes. 11 listed at $900,000 or higher and 21 listed under $600,000.
Pending Sales-48 Single Family Homes with 30 listed under $600,000 and 1 over $900,000. 6 Properties went Sale Pending this week with under $700,000
196 Closed Sales since January 1, 2009 with 8 that were listed for over $900,000. 79 sales were from homes listed at $500,000 or less. 2 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

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

• 3 Bedrooms
• 2 Bathrooms
• Level Fenced Yard
• Remodeled Kitchen
• Updated Bathrooms
• New Carpet
• Backs up to Open Space
• 1040 Sq.Ft.

Check it out!

“Friday, the FHA Commissioner announced that after January 1, the FHA will require appraisals to be ordered via HVCC, and that instead of a net worth of $250,000 lenders must have a net worth of $1 million sometime in the next year. The FHA sent out a Mortgagee Letter to all lenders that they are adopting HVCC in most of its current form – the same one adopted by Fannie & Freddie in May. Mortgage originators will no longer be able to order appraisals from appraisers, but instead use AMC’s, which contributed to some of the popularity of FHA loans. Appraisers stand to make a little more, brokers will have less control, FHA appraisals will only be good for 4 months and not 6, and the FHA will allow appraisals to be transferred to another lender. Realtors can still give appraisers comparable sales data, but just not value: a fine distinction. In addition, the FHA said it may fall below its mandated capital level (2% reserves) for the first time in its history, but it will not require a taxpayer bailout, and that they will be hiring a chief risk officer. (Talk about a piece of cake job, right?)

Mini-eagle questions? “Lenders seeking approval to originate, underwrite, or service an FHA loan must meet the eligibility criteria for a supervised or non-supervised mortgagee. Mortgagees with this approval status must assume liability for all the loans they originate and/or underwrite. Loan Correspondents (mortgage brokers) will continue to be able to originate FHA-insured loans through their relationships with approved mortgagees; however they will no longer receive independent FHA approval for origination eligibility. Much more stringent requirements. Check it all out at: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/HUDNo.09-177

Why the changes? According to the MBAA, almost 20% of FHA loans are delinquent in some form. The number of loans that they insure has grown from slightly more than 4 million 3 years ago to almost 5 ½ million now. Many originators view FHA loans as a substitute for the subprime loans from days gone by and some analysts feel that these loans will cause a huge negative impact on the industry and on the taxpayer. (Not everyone deserves a home loan, right? Why allow DTI’s above 36%? 3.5% or less down?)

PMI made some adjustments to their Distressed Markets List, at the same time increasing the maximum debt-to-income (DTI) ratios to 45% for all loans.  While this will allow more borrowers to qualify, “we caution our customers to carefully analyze the borrower’s ability to repay the loan using a higher ratio.  We will require that your submissions represent a balanced range of DTI ratios.”

We’re expecting a heatwave over the next two days on the coastside.  So what do Bay Area folks do when the temperatures get close to 3 digits everywhere-go to the beach.

Surfers Beach-El Granada

“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.

Our friend and Lender, Andy Block of Opes Advisors poses a very good scenario and question that may be timely for you to think about.

“Maybe now is a good time to move up to a bigger home in the neighborhood where I want to live…I can take advantage of the low interest rates and home prices…But, I won’t get what I want for my current home if I sell now…So, maybe I should hold out for a price I think I could get some day.”

But WHAT IF. . .

 You stay in your current home for the foreseeable future?  Your net worth at retirement would be $5.7M.

 You sell now for $1,000,000, buy a new house for $1,300,000 and reduce your lifestyle expenses* by $400/month? Your net worth at retirement would remain at $5.7M AND you would live in the home you prefer.  *Excludes housing expenses, taxes and savings

 You decide to hold out for 5 years when you think you can sell your home for $1,200,000 (vs. $1,000,000 today) and buy a new house then for $1,550,000? Your net worth at retirement would decline to $4.7M, a difference of $1.0M.

The detailed analysis of the above scenarios revealed varying outcomes.  Reviewing the specific results gave a client the information needed to move forward with confidence. This is the power of integrating both the asset side and the debt side of your balance sheet.

Let us know if you would like to discuss specific situations or the various “what ifs” in life.

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.

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 17.5 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. 55 of the listings are listed at over 1 Million. 16 between $999-$900,000 and 37 homes listed between $500,000 and $800,000.  Of the 8 new Pending Sales this week, 3 were listed between $975-$995,000.  Very encouraging for the end of August.

Active Listings-130  Single Family Homes with 55  listed at $1 Million or more.
6 New Listings this week with 3 under $800,000.

Pending Sales-38 Single Family Homes with 8 listed for under $500,000 and 5 over 1 Million.  The bulk of the pendings/17, were listed between $500-800,000.  8 Properties went Sale Pending this week.

65 Homes Closed since January 1, 2009 with only 11 that closed over $1,000,000, 8 between $900,000-$1 Million, and 29 that were listed under $700,000. 5 homes closed this week. 4 were listed between $600-$699,00 and closed within 5% of the list price.  1 home closed over 1M and was listed at $1.5Million and closed at $1,275,000.

 
Sellers Market with few Homes for Sale – PACIFICA, CALIFORNIA with 1.58 months supply.

This week, 6 new listings with one listed over 1Million and 3 listed between $500-$600,000.    Of the 4 new pending sales, 2 were listed under $600,00.  Statistics remain consistent another week with the current number of Active Listings divided by the average number of homes sold YTD, there is 1.58 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. 

Active Listings-40 Single Family Homes.  9 listed at $800,000 or higher and 7  listed under $600,000. 6 new listings this week.
 
Pending Sales-51 Single Family Homes with 2 listed over $1,000,000 and 21 listed under $500,000.  
4 Properties went Sale Pending this week with 2 listed under $600,000.

158 Closed Sales since January 1, 2009 with 5 that were listed for over 1 Million. 68 sales were from homes listed at $500,000 or less. 68 sales were from homes listed between $500,000-800,000.  8 homes closed this week.

Considering the decreasing inventory, few new listings and higher prices for those remaining active listings, we expect to see the sales activity continue to slow down.

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

There are only 98 days remaining to take advantage of the $8,000 tax credit for first- time homebuyers. Prime candidates for the homebuyer credit are those who haven’t owned a home before and whose income falls below the threshold of $75,000 for individuals or $150,000 for married couples.

First-time buyers who purchase a home and close escrow before December 1, 2009 may be eligible for this credit. As a reminder, unlike a tax deduction that only reduces the amount of your taxable income, a tax credit reduces the amount of tax you owe. If you know first-time buyers who are considering a home purchase, it’s a great time to remind them of this added benefit to buying a home now.

Here are some highlights of the 2009 first-time homebuyer credit:

• The credit is 10% of the purchase price, to a maximum of $8,000 ($4,000 for married individuals filing separate returns).
• Generally speaking the credit does not have to be paid back. However, if the home ceases to be a principal residence within 36 months after the purchase (closing) date, the full credit must be repaid.
• The credit is refundable. This means, if the client’s tax bill is less than $8,000, the government will issue a check.
• As noted above, escrow must close before December 1, 2009.
• To qualify, the taxpayer must not have owned and occupied a principal residence at any time during the three years prior to the date of purchase.
• If one spouse does not qualify for the credit, neither spouse may take it.
• The home cannot be purchased from a close relative (spouse, parent, grandparent, child or grandchild).
• After the home is purchased, homebuyers may amend their 2008 returns to get the credit faster or simply wait until they file their 2009 tax returns to claim it.

You can find out more about filing for the tax credit, download the new First-Time Homebuyer IRS Form 5405 or get more information on the program by clicking here.

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 17.5 months supply.

Active Listings continue to stay high and inched up this week again for the second 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. 55 of the listings are listed at over 1 Million. 18 between $999-$900,000 and 27 homes listed between $500,000 and $800,000.  Of the 3 new Pending Sales again this week, all were listed at $769,000 or less.  This weeks activity was similar to last week and normal for the end of August.

Active Listings-133  Single Family Homes with 55  listed at $1 Million or more.
6 New Listings this week with 3 over $900,000.

Pending Sales-36 Single Family Homes with 8 listed for under $500,000 and 6 over 1 Million.  The bulk of the pendings/12, were listed between $500-700,000.  3 Properties went Sale Pending this week.

60 Homes Closed since January 1, 2009 with only 10 that closed over $1,000,000, 13 between $800,000-$999,000 and 24 that were listed under $700,000.  2 homes closed this week. 

 
Sellers Market with few Homes for Sale – PACIFICA, CALIFORNIA with 1.58 months supply.

This week, all 8 new listings were priced between $700-788,000.    The 5 new pending sales this week were for properties listed between $525 -$590,000.  Statistics remain consistent another week with the current number of Active Listings divided by the average number of homes sold YTD, there is 1.58 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. 

Active Listings-37 Single Family Homes.  4 listed at $819,000 or higher and 7  listed under $600,000. 8 new listings this week.
 
Pending Sales-58 Single Family Homes with 4 listed over $900,000 and 23 listed under $500,000.  
5 Properties went Sale Pending this week listed from $525,000 – $590,000.

150 Closed Sales since January 1, 2009 with 5 that were listed for over 1 Million. 66 sales were from homes listed at $500,000 or less. 

Considering the decreasing inventory, few new listings and higher prices for those remaining active listings, we expect to see the sales activity continue to slow down.

Still a Buyers Market – HALF MOON BAY through MONTARA, CALIFORNIA with 17.5 months supply.

Active Listings continue to stay high and inched up this week from last week.  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. Still, just under half of the listings are listed at over 1 Million and 12% at $600,000 or less. 7 of those listings are located at Martins Beach which continues to attract buyers even though the properties will have to be abandonded in 12 years.
Of the 3 new Pending Sales this week, all were listed at $799,000 or less.  This weeks activity was a bit of a slow down from the previous week.

Active Listings-130 Single Family Homes with 59 listed at $1 Million or more.
8 New Listings this week with 5 over 1 Million.

Pending Sales-39 Single Family Homes with 8 listed for under $500,000 and 8 over 1 Million.
3 Properties went Sale Pending this week.

57 Homes Closed since January 1, 2009 with only 8 that closed over $1,000,000 and 8 between $900,000 and 1 Million and 9 listed at $500,000 or less. One home closed this week that was listed at $799,000.
 
Sellers Market with few Homes for Sale – PACIFICA, CALIFORNIA with 1.58 months supply.

Statistics remain consistent another week With the current number of Active Listings divided by the average number of homes sold YTD, there is 1.58 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. 

Active Listings-30 Single Family Homes.  6 listed at $1,000,000 or higher and 9 listed under $600,000. NO new listings this week.
 
Pending Sales-59 Single Family Homes with 4 listed over $900,000 and 25 listed under $500,000 and 20 listed between 500-600,000. 
6 Properties went Sale Pending this week from $849,000 to $525,000 list price.

146 Closed Sales since January 1, 2009 with 5 that were listed for over 1 Million. 64 sales were from homes listed at $500,000 or less and 39 homes listed between $500-600,000.
5 Homes Closed this week with 4 that were listed under $580,000.

Considering the decreasing inventory, few new listings and higher prices for those remaining active listings, we expect to see the sales activity continue to drop.

“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.