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Sunday, December 23, 2012
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Tuesday, December 11, 2012
How Will the New 3.8% Investment Tax Affect Real Estate
First, understand that this tax WILL NOT be imposed on all real estate transactions, a common misconception. Rather, when the legislation becomes effective in 2013, it may impose a 3.8% tax on some (but not all) income from interest, dividends, rents (less expenses) and capital gains (less capital losses). The tax will fall only on individuals with an adjusted gross income (AGI) above $200,000 and couples filing a joint return with more than $250,000 AGI.
Also, please note that the new tax applies to the LESSER of:
1. Investment income amount
or
2. Excess of AGI over the $200,000 or $250,000 amount
As an example, let’s take the sale of a principal residence.
John and Mary sold their principal residence and realized a gain of $525,000.
They have $325,000 Adjusted Gross Income (before adding taxable gain).
The tax applies as follows:
AGI Before Taxable Gain $325,000
Gain on Sale of Residence $525,000
Taxable Gain (Added to AGI) $25,000 ($525,000 – $500,000 home sale exemption)
New AGI $350,000 ($325,000 + $25,000 taxable gain)
Excess of AGI over $250,000 $100,000
($350,000 – $250,000)
Lesser Amount (Taxable) $25,000 (Taxable gain)
Tax Due $950 ($25,000 x 0.038)
Also, please note that the new tax applies to the LESSER of:
1. Investment income amount
or
2. Excess of AGI over the $200,000 or $250,000 amount
As an example, let’s take the sale of a principal residence.
John and Mary sold their principal residence and realized a gain of $525,000.
They have $325,000 Adjusted Gross Income (before adding taxable gain).
The tax applies as follows:
AGI Before Taxable Gain $325,000
Gain on Sale of Residence $525,000
Taxable Gain (Added to AGI) $25,000 ($525,000 – $500,000 home sale exemption)
New AGI $350,000 ($325,000 + $25,000 taxable gain)
Excess of AGI over $250,000 $100,000
($350,000 – $250,000)
Lesser Amount (Taxable) $25,000 (Taxable gain)
Tax Due $950 ($25,000 x 0.038)
Tuesday, December 4, 2012
Q3 Home Prices Show Strongest Growth Since 2006
By Inman News
Shrinking inventory deterring some first-time buyers.
Home prices and home sales both showed strong annual growth during the third quarter, according to the latest report by the National Association of Realtors.
The national median existing single-family home price jumped 7.6 percent from a year ago, to $186,100 — the strongest year-over-year increase for any quarter since first-quarter 2006, when prices were up 9.4 percent from the previous year.
Sales of existing homes rose 10.3 percent during the third quarter, to a seasonally adjusted annual rate of 4.68 million, up from 4.25 million a year ago.
Median prices posted annual gains in 120 of 149 metros tracked, up from 110 metros showing gains in the second quarter of 2012 and 39 metros with price appreciation during the third quarter of 2011.
Inventory of existing homes for sale was down 20 percent from a year ago, to 2.32 million. The combination of rising prices and tight inventory on a quarterly basis indicate that the housing recovery is settling in, said Lawrence Yun, NAR’s chief economist, in a statement.
“We expect fairly normal appreciation patterns in 2013, but there is a risk of price acceleration if builders are unable to meet the needs of our growing population and household formation,” Yun said.
Fighting tight inventory, the West saw the lowest percentage jump of existing-home sales in the third quarter with a 2.1 percent bump from a year ago. The short inventory also translated into a median home price leap of 20.2 percent to $247,400 from a year ago.
Shrinking inventory deterring some first-time buyers.
Home prices and home sales both showed strong annual growth during the third quarter, according to the latest report by the National Association of Realtors.
The national median existing single-family home price jumped 7.6 percent from a year ago, to $186,100 — the strongest year-over-year increase for any quarter since first-quarter 2006, when prices were up 9.4 percent from the previous year.
Sales of existing homes rose 10.3 percent during the third quarter, to a seasonally adjusted annual rate of 4.68 million, up from 4.25 million a year ago.
Median prices posted annual gains in 120 of 149 metros tracked, up from 110 metros showing gains in the second quarter of 2012 and 39 metros with price appreciation during the third quarter of 2011.
Inventory of existing homes for sale was down 20 percent from a year ago, to 2.32 million. The combination of rising prices and tight inventory on a quarterly basis indicate that the housing recovery is settling in, said Lawrence Yun, NAR’s chief economist, in a statement.
“We expect fairly normal appreciation patterns in 2013, but there is a risk of price acceleration if builders are unable to meet the needs of our growing population and household formation,” Yun said.
Fighting tight inventory, the West saw the lowest percentage jump of existing-home sales in the third quarter with a 2.1 percent bump from a year ago. The short inventory also translated into a median home price leap of 20.2 percent to $247,400 from a year ago.
Tuesday, November 27, 2012
No Fall Slowdown in Bay Area
No Fall Slowdown in Bay Area as Buyers Snatch up Luxury Homes
The housing market is supposed to slow down as we get deeper into the fall season and inch closer to the holidays, but something very unusual is happening here in the Bay Area. Not only is the market remaining active overall, there’s been a remarkable surge in luxury home buying – in particular, the mega-home sales.
A quick look at closed sales at the end of October caught my attention. Our company alone closed an amazing 13 sales over more than $5 million in the Bay Area just in the last two weeks of October! The vast majority of these deals were in San Francisco, the Peninsula and Silicon Valley, although one was in Healdsburg. The homes went for as much as $11.1 million, the price paid for a Los Altos Hills property.
In all, we saw the strongest October in sales volume since 2004 for the San Francisco Peninsula Region. And although I can’t share with you Coldwell Banker’s proprietary sales figures, I can tell you that this added up to a 56 percent gain from just last October.
For a market that still faces a number of economic and political headwinds, this is quite a remarkable spike in activity for the upper end of the market.
So, what do we make of all this? It’s a strong signal that the so-called “smart money” is placing some very big bets that the housing recovery is well on its way. Well-heeled investors believe that real estate today offers a tremendous value and the long-term potential is quite attractive.
Below is a market-by-market report from our local offices:
South County – The South County market continues to be battered by low inventory. Gilroy’s inventory is down to 55 actives, our local manager says – which is 1/3 of what a healthy, balanced market looks like. Of those, 33% are the luxury market for the area. As a result of the low inventory, most properties are going with multiple offers in a matter of days or hours. There are few open houses and those that get held open are well attended. San Benito County is similarly bleak with a lack of inventory. There are just 72 homes listed in Morgan Hill and only 14 homes for sale in San Martin. The “Sellers’ Market Phenomenon” continues. The average home in South County is selling at or above 101% of list price. The average “days on market” has dropped from 137 days (one year ago) to just 40 days (Nov. 2012). A true indicator of the market is “months of available inventory.” That statistic is at its lowest level in years (just under three months supply). Sellers are smiling, buyers are frustrated and agents are working very hard writing offers that are acceptable to sellers– over list price with no appraisal contingency. There also seems to be no seasonal adjustment, as demand remains very high for the few available listings.
Santa Cruz County – Inventory continues to drop. The total inventory of properties available for sale in October was 580, down 15.5% from 686 last month, and down 42.8% from 1,014 in October of last year. October 2012 inventory was at its lowest level compared with October of 2011 and 2010. There is currently about a 2.6 mo supply of inventory and market times continue to shorten also. The average DOM is 60 days, down about 19% from this time last year. The market with the inventory we have vs. the number of buyers is moving very quickly and most properties have multiple offers.
Monterey Peninsula – It’s hard to believe that it’s already November and sales activity on the Peninsula continues on as it has been for some months now. In most years new escrows would have decreased by now. However, our steady pace continues, though our listing inventory is falling. We are now seeing persistent agents with buyers but no suitable home to sell them. Agents are going out and finding possible homes and contacting the owners to see if they would be interested in an offer, and in a number of cases it has resulted in a sale. The Previews luxury market has seen increasing sales the last few months as well.
Silicon Valley – People have to stand in line to get into some open houses, our Cupertino manager says. We’ve got too many buyers chasing too few homes and too many agents chasing too few deals. In the Los Gatos area, properties are continuing to go under contract in spite of low inventory. There has been a recent uptick in pendings across the board, especially in the Los Gatos Mountains. This is a great time of year to educate sellers about the opportunity of selling their home now versus later. Our San Jose Almaden manager says multiple offers continue to be the norm. Inventory has reached 52-week lows in six of our 19 areas. Percentage under contract is 66% for SFD’s and 77% for PUD’s for the county. Inventory is still dropping in Santa Clara County with approximately 1,076 single-family homes available at present. Multiple offers on most properties, especially in the lower priced properties, is the norm. Low interest rates are keeping buyers in the market. Open house traffic is still extremely active in all price ranges. Our Willow Glen manager says agents are still seeing multiple offers in the low end of the market. Anything under the $600k mark is extremely competitive at this price point. The mid-level market is still seeing strong demand for anything in the $650 to $850 range. It’s not as competitive, however still multiple offers on most properties in this range. We have seen a bit of as slowdown in demand for anything over the $1 million price point. Some properties are sitting on the market, but it might be seasonal; we will see how the market responds in the next few weeks post-election. Saratoga sales activity for the month of October was incredible, our local manager says. With listing inventory at an extremely low point the agents are complaining daily that they can’t find properties for their buyers.
San Francisco – Our San Francisco Lakeside manager said his experience is that buyers are ready to buy if only they can find a house that suits their needs in an increasingly picked over inventory. Sellers are seeing that the best way to get the highest price is not to price high. An agent reported that his client’s offer of several hundred thousand dollars over the asking price in St. Francis Wood was scoffed at and the property sold for a million dollars over the list price! Our Lombard manager reports that listings are starting to slow down a little. The percentage of deals this week that drew multiple offers is down, but most sales prices are still going over asking. Mortgage offers often have to go into back-up position behind all cash deals. Low inventory continues to be the headline as sellers shifted their focus to the election and the upcoming holidays. Buyers are still out in force, our Market Street manager reports, but not all properties receive multiple offers. One agent described his $769K listing as a “feeding frenzy” and gave out 45 disclosures, while other listing agents are doing multiple counter-offers to ratify with a single party. Our Sunset manager notes that it continues to be an active market. Inventory has decreased slightly in the last couple of weeks. There are still a lot of multiple offers but the number of offers has decreased. Agents are reporting large turnout at their open houses. And our Van Ness office reports that activity for past 10 days closing out October, which was the biggest closing month of the year.
SF Peninsula — Multiple offers and lots of them are the rule of the day, according to our Burlingame manager. With so few properties and so many buyers trying to complete purchases by years’ end, the Peninsula is “Red Hot” – 20 plus offers on well-presented listings have become the new normal. Sale prices are trending at 200k to 300k or more over asking in these situations. As always cash is king and offers with no contingencies are winning the day. We are finally seeing some movement in the $10 mill.+ price range with two pending sales over $12 mill. and increased activity in general in Hillsborough and San Mateo Park. According to our Menlo Park manager, open houses on lower end homes (outside of MP but still local) have been amazing – lots and lots of people. The public has been trained – most are armed with lender letters already. Higher end has slowed. Additional cautiousness has crept into the market. Some of that cautiousness may be election related. Inventory is starting to slow down in the Palo Alto area from what it was a month ago. Nonetheless, demand for inventory is still extremely high. Homes that would list for $1.3 have sold for $1.8 – all cash. Lack of inventory leads to fewer open houses, which in turn gives less opportunity to meet new clients, our Redwood City manager says. Any property – single family home or condo or townhouse – that comes on the market priced right and showing well is immediately in a multiple offer situation. Still a lot of anxious buyers looking for a home. San Mateo area inventory is down sharply and our local manager is unsure if it is the season or sign of things to come. Upper end Woodside continues to be a struggle. Sales are slowing again across the board in all of Woodside and surrounding ‘rural’ properties.
The housing market is supposed to slow down as we get deeper into the fall season and inch closer to the holidays, but something very unusual is happening here in the Bay Area. Not only is the market remaining active overall, there’s been a remarkable surge in luxury home buying – in particular, the mega-home sales.
A quick look at closed sales at the end of October caught my attention. Our company alone closed an amazing 13 sales over more than $5 million in the Bay Area just in the last two weeks of October! The vast majority of these deals were in San Francisco, the Peninsula and Silicon Valley, although one was in Healdsburg. The homes went for as much as $11.1 million, the price paid for a Los Altos Hills property.
In all, we saw the strongest October in sales volume since 2004 for the San Francisco Peninsula Region. And although I can’t share with you Coldwell Banker’s proprietary sales figures, I can tell you that this added up to a 56 percent gain from just last October.
For a market that still faces a number of economic and political headwinds, this is quite a remarkable spike in activity for the upper end of the market.
So, what do we make of all this? It’s a strong signal that the so-called “smart money” is placing some very big bets that the housing recovery is well on its way. Well-heeled investors believe that real estate today offers a tremendous value and the long-term potential is quite attractive.
Below is a market-by-market report from our local offices:
South County – The South County market continues to be battered by low inventory. Gilroy’s inventory is down to 55 actives, our local manager says – which is 1/3 of what a healthy, balanced market looks like. Of those, 33% are the luxury market for the area. As a result of the low inventory, most properties are going with multiple offers in a matter of days or hours. There are few open houses and those that get held open are well attended. San Benito County is similarly bleak with a lack of inventory. There are just 72 homes listed in Morgan Hill and only 14 homes for sale in San Martin. The “Sellers’ Market Phenomenon” continues. The average home in South County is selling at or above 101% of list price. The average “days on market” has dropped from 137 days (one year ago) to just 40 days (Nov. 2012). A true indicator of the market is “months of available inventory.” That statistic is at its lowest level in years (just under three months supply). Sellers are smiling, buyers are frustrated and agents are working very hard writing offers that are acceptable to sellers– over list price with no appraisal contingency. There also seems to be no seasonal adjustment, as demand remains very high for the few available listings.
Santa Cruz County – Inventory continues to drop. The total inventory of properties available for sale in October was 580, down 15.5% from 686 last month, and down 42.8% from 1,014 in October of last year. October 2012 inventory was at its lowest level compared with October of 2011 and 2010. There is currently about a 2.6 mo supply of inventory and market times continue to shorten also. The average DOM is 60 days, down about 19% from this time last year. The market with the inventory we have vs. the number of buyers is moving very quickly and most properties have multiple offers.
Monterey Peninsula – It’s hard to believe that it’s already November and sales activity on the Peninsula continues on as it has been for some months now. In most years new escrows would have decreased by now. However, our steady pace continues, though our listing inventory is falling. We are now seeing persistent agents with buyers but no suitable home to sell them. Agents are going out and finding possible homes and contacting the owners to see if they would be interested in an offer, and in a number of cases it has resulted in a sale. The Previews luxury market has seen increasing sales the last few months as well.
Silicon Valley – People have to stand in line to get into some open houses, our Cupertino manager says. We’ve got too many buyers chasing too few homes and too many agents chasing too few deals. In the Los Gatos area, properties are continuing to go under contract in spite of low inventory. There has been a recent uptick in pendings across the board, especially in the Los Gatos Mountains. This is a great time of year to educate sellers about the opportunity of selling their home now versus later. Our San Jose Almaden manager says multiple offers continue to be the norm. Inventory has reached 52-week lows in six of our 19 areas. Percentage under contract is 66% for SFD’s and 77% for PUD’s for the county. Inventory is still dropping in Santa Clara County with approximately 1,076 single-family homes available at present. Multiple offers on most properties, especially in the lower priced properties, is the norm. Low interest rates are keeping buyers in the market. Open house traffic is still extremely active in all price ranges. Our Willow Glen manager says agents are still seeing multiple offers in the low end of the market. Anything under the $600k mark is extremely competitive at this price point. The mid-level market is still seeing strong demand for anything in the $650 to $850 range. It’s not as competitive, however still multiple offers on most properties in this range. We have seen a bit of as slowdown in demand for anything over the $1 million price point. Some properties are sitting on the market, but it might be seasonal; we will see how the market responds in the next few weeks post-election. Saratoga sales activity for the month of October was incredible, our local manager says. With listing inventory at an extremely low point the agents are complaining daily that they can’t find properties for their buyers.
San Francisco – Our San Francisco Lakeside manager said his experience is that buyers are ready to buy if only they can find a house that suits their needs in an increasingly picked over inventory. Sellers are seeing that the best way to get the highest price is not to price high. An agent reported that his client’s offer of several hundred thousand dollars over the asking price in St. Francis Wood was scoffed at and the property sold for a million dollars over the list price! Our Lombard manager reports that listings are starting to slow down a little. The percentage of deals this week that drew multiple offers is down, but most sales prices are still going over asking. Mortgage offers often have to go into back-up position behind all cash deals. Low inventory continues to be the headline as sellers shifted their focus to the election and the upcoming holidays. Buyers are still out in force, our Market Street manager reports, but not all properties receive multiple offers. One agent described his $769K listing as a “feeding frenzy” and gave out 45 disclosures, while other listing agents are doing multiple counter-offers to ratify with a single party. Our Sunset manager notes that it continues to be an active market. Inventory has decreased slightly in the last couple of weeks. There are still a lot of multiple offers but the number of offers has decreased. Agents are reporting large turnout at their open houses. And our Van Ness office reports that activity for past 10 days closing out October, which was the biggest closing month of the year.
SF Peninsula — Multiple offers and lots of them are the rule of the day, according to our Burlingame manager. With so few properties and so many buyers trying to complete purchases by years’ end, the Peninsula is “Red Hot” – 20 plus offers on well-presented listings have become the new normal. Sale prices are trending at 200k to 300k or more over asking in these situations. As always cash is king and offers with no contingencies are winning the day. We are finally seeing some movement in the $10 mill.+ price range with two pending sales over $12 mill. and increased activity in general in Hillsborough and San Mateo Park. According to our Menlo Park manager, open houses on lower end homes (outside of MP but still local) have been amazing – lots and lots of people. The public has been trained – most are armed with lender letters already. Higher end has slowed. Additional cautiousness has crept into the market. Some of that cautiousness may be election related. Inventory is starting to slow down in the Palo Alto area from what it was a month ago. Nonetheless, demand for inventory is still extremely high. Homes that would list for $1.3 have sold for $1.8 – all cash. Lack of inventory leads to fewer open houses, which in turn gives less opportunity to meet new clients, our Redwood City manager says. Any property – single family home or condo or townhouse – that comes on the market priced right and showing well is immediately in a multiple offer situation. Still a lot of anxious buyers looking for a home. San Mateo area inventory is down sharply and our local manager is unsure if it is the season or sign of things to come. Upper end Woodside continues to be a struggle. Sales are slowing again across the board in all of Woodside and surrounding ‘rural’ properties.
Friday, November 16, 2012
OCTOBER MARKET STATISTICS
Home inventory continues to be abysmal. It was off 41.6% from last October.
The median price for homes jumped 27.5% year-over-year. The median price has been higher than the year before for the past nine months. The sales price to list price ratio has been over 100% for the past eight months.
The average price for homes was up 27.3% year-over-year.
Pending home sales were down 3.1% year-over-year.
Friday, November 2, 2012
The Bi-Weekly Market-By-Market Report
By Rick Turley
President, San Francisco Bay Area
Coldwell Banker Residential Brokerage
Below is a market-by-market report from our local offices:
South County – Inventory is at such dire levels that only 54 homes are active in all of Gilroy. REO’s have all but dried up. Five REO’s are for sale in Gilroy, six in all of San Benito County, and five in Morgan Hill and San Martin. San Benito County has only 90 homes for sale in the entire county. Overbidding homes is constant, with offers going 5%+ over asking price. And there seems to be no slowing down. It has been a nice change of pace for a seller, but brutal on buyers. Houses don’t make it hours or days on the market – they sell that fast. It seems that this has been the year for South County and San Benito County to cycle through most of the backlog short sales and to make way for the new move-up buyer coming back into the market. As the inventory “crisis” worsens the average price of a home sold in Morgan Hill has increased by over 20% (over the last three months). Multiple offers are driving prices skyward with anxious buyers willing to pay substantially over asking price for property. In addition, many buyers are willing to waive appraisal contingencies in order to be competitive in this marketplace. It is not uncommon for moderately priced homes (that show well) to garner seven to 10 offers—all at above the list price.
Santa Cruz County – The market overall has experienced improvement over the last year. Sales continue to come steadily in and like other markets our challenge is the demand is way exceeding the supply for Buyers. Agents must be creative to find properties off market, and honing their skills in putting forth their best effort as many homes are in a multiple offer situation. About 65% of our closed sales are under $600,000 although as prices inch upwards we are noting that that stat has dropped from a high of 70% last year. The Previews market is fairly steady and there are sales occurring, although it still represents only a small percentage of local sales. Properties from $1 million to $2 million represent about 6% of the total closed sales and sales over $2 million represents 1%. Agents are looking for properties that are off market, which tend to be cash transactions and short closes.
Monterey Peninsula – We’re continuing to have excellent sales activity with very few REOs anymore – now short sales and many more regular sales. And most of the lenders seem to be getting more efficient at handling the short sales, and with that lessening of the time spent between offer and lender approval, we are not having as many short sale fall-outs from buyers getting tired of waiting for approval as we did some months ago. Our open houses continue to be well attended, particularly in the second home areas of Carmel and Pacific Grove. The Preview luxury market is improving but still has a lot of inventory.
North Bay – At our Marin sales meeting on Wednesday, our local manager asked, “How many of you have a listing you’ll be putting on before the end of the year?” Only one hand went up, along with a few tentative half raised hands. When he asked how many had buyers, nearly everyone raised their hands– about 50 agents. And, so goes the Marin market. Agents were counseled to search high and low to uncover potential homes for sale, look up expired listings, send out inquiries to neighborhoods where they have buyers, network and encourage those on the fence to sell. We need the inventory. Otherwise, we are experiencing fairly robust sales for this time of year, so it’s good to see that deals are actually happening, despite the low inventory. In Santa Rosa, we are finding that appropriately priced homes are still receiving multiple offers, as the pent up demand at the lower end is still evident. Many homes are coming on to the market at prices that seem to be low for the market. This may be due to agents determining price with their sellers and then by the time they actually come to market, other buyers on comparable homes have already bid the comparable sales higher. This lag in timing is proving to be a challenge for appraisals, but is often taken care of by the buyer bringing more cash to the table. Inventory across all price categories for Single Family dwellings in Sonoma County is down approximately 20 percent from early June of this year.
San Francisco – While some agents report a slight drop in traffic and activity, most offers remain multiple, our Lombard office manager reports. A number of pre-emptive offers were made this week, as buyers will pay a premium to avoid open competition. Market Street agents are looking for inventory as most listings continue to receive multiple over-asking offers. Buyers are out in force (one modest house near Glen Park BART had over 100 groups during its first open house), and savvy agents continue to get their buyers in to properties pre-MLS when possible. In the Sunset district, open houses continued to be very active. Multiple offers are still the norm as majority of the ratified deals are in multiple offer situation. Listing prices continued to edge upward as sellers are starting to get aggressive in their pricing. In the preceding week our Van Ness office ratified 30 sales vs. 22 sales the week before. There is heavy competition for the finer north side of the City homes at record prices. Multiple offers on most sales.
SF Peninsula — We’re seeing busy open homes at every price point. One listing in South San Francisco listed at $449,000 had over 150 groups attending open houses both Saturday and Sunday. One San Carlos listing had six offers and will close well above asking. One Burlingame property listed at $1,449,000 just closed at $1,651,000 with cash purchasers. The scarce inventory is being snapped up and bid up in the price range under $1,500,000, our Burlingame manager says. Too few properties to meet the demand. There are currently 61 active and 16 pending listings in Hillsborough. Our local manager is starting to see interest in some of the most expensive properties that have been on the market for some months. Buyers are looking at end of year, low interest rates and the perception of softness in the 5+ million range and certainly in the 10 + million range. Our Half Moon Bay office said they need more inventory under the $1m mark. Sales are brisk in the $550k-850k range. In Menlo Park area, all price ranges are still moving. Good properties come on, they sell right away albeit with only one or two offers now. Our Palo Alto buyer’s agents have been winning in multiple offer situations, fortunately. Sales are up. Multiple offers are nearly 100%. Move up buyers are reluctant to market a home without inventory to move up to, our San Mateo manager says. They cannot use a contingency offer in this market where certainty is demanded in contracts. Low inventory continues to plague our market. Nearly 56% of all September closed escrows in our market place sold for the list price or more. Friday, we had 19 offers on a single family home in San Mateo listed at $799,000. Several of our agents are working with buyers who are writing offers with all cash or substantial down payments, short periods to close escrow, and despite our advice against a contingency free offer, still choosing to do so.
East Bay – Our Oakland-Piedmont manager said last weekend’s open house traffic was slower and it seemed as if there might not be as much competition for the listings. But that all changed in a flash as the week went agents found clients in competition with 11 offers, 8 offers, 15 offers and so it goes. Several clients who have continued to lose out in multiple offer situations are ready to do whatever it takes in their offers to get accepted. There is still a lot of cash winning the multiple offer battle at all price points. Even though inventory is decreasing, buyers continue to make offers, our Orinda manager says. Multiple offers continue resulting in many homes going into contract over asking price. Many cash offers and open homes heavily attended. In Walnut Creek, local inventory is still low. New construction has really become an alternative and even those projects are starting to sell out quickly.
Silicon Valley – The market’s been steady, our Cupertino manager reports. There were 180 groups at a fixer upper on a busy street in Sunnyvale listed for $728K with 47 disclosure packages handed out. Need we say more about the lack of inventory? There has been a recent uptick in agents getting their buyers into contract, our Los Gatos manager says. Buyers are continuing to struggle with meeting short time frames on multiple offers and whether or not they should waive their appraisal contingency. Our San Jose Almaden manager notes that multiple offers prevail. One listing came out at $610K and, after 2 weeks and no offers, they lowered the price to $589K. They got multiple offers in four days and sold for $625K, proving you cannot under price a home in today’s market but you certainly can over price one. And buyers only want it if other buyers want it as well. The psychology of today’s market. Willow Glen overall inventory is down slightly. Our manager says agents are seeing a slight decrease in the number of multiple offers and the bidding up and over list prices has leveled off. Demand for lower end to midlevel priced homes in the $400k to $600k range is still very strong. We continue to have sellers listing homes through the holiday season, and many may be trying to get on the market and in contract prior to the election and by the end of the year.
President, San Francisco Bay Area
Coldwell Banker Residential Brokerage
Below is a market-by-market report from our local offices:
South County – Inventory is at such dire levels that only 54 homes are active in all of Gilroy. REO’s have all but dried up. Five REO’s are for sale in Gilroy, six in all of San Benito County, and five in Morgan Hill and San Martin. San Benito County has only 90 homes for sale in the entire county. Overbidding homes is constant, with offers going 5%+ over asking price. And there seems to be no slowing down. It has been a nice change of pace for a seller, but brutal on buyers. Houses don’t make it hours or days on the market – they sell that fast. It seems that this has been the year for South County and San Benito County to cycle through most of the backlog short sales and to make way for the new move-up buyer coming back into the market. As the inventory “crisis” worsens the average price of a home sold in Morgan Hill has increased by over 20% (over the last three months). Multiple offers are driving prices skyward with anxious buyers willing to pay substantially over asking price for property. In addition, many buyers are willing to waive appraisal contingencies in order to be competitive in this marketplace. It is not uncommon for moderately priced homes (that show well) to garner seven to 10 offers—all at above the list price.
Santa Cruz County – The market overall has experienced improvement over the last year. Sales continue to come steadily in and like other markets our challenge is the demand is way exceeding the supply for Buyers. Agents must be creative to find properties off market, and honing their skills in putting forth their best effort as many homes are in a multiple offer situation. About 65% of our closed sales are under $600,000 although as prices inch upwards we are noting that that stat has dropped from a high of 70% last year. The Previews market is fairly steady and there are sales occurring, although it still represents only a small percentage of local sales. Properties from $1 million to $2 million represent about 6% of the total closed sales and sales over $2 million represents 1%. Agents are looking for properties that are off market, which tend to be cash transactions and short closes.
Monterey Peninsula – We’re continuing to have excellent sales activity with very few REOs anymore – now short sales and many more regular sales. And most of the lenders seem to be getting more efficient at handling the short sales, and with that lessening of the time spent between offer and lender approval, we are not having as many short sale fall-outs from buyers getting tired of waiting for approval as we did some months ago. Our open houses continue to be well attended, particularly in the second home areas of Carmel and Pacific Grove. The Preview luxury market is improving but still has a lot of inventory.
North Bay – At our Marin sales meeting on Wednesday, our local manager asked, “How many of you have a listing you’ll be putting on before the end of the year?” Only one hand went up, along with a few tentative half raised hands. When he asked how many had buyers, nearly everyone raised their hands– about 50 agents. And, so goes the Marin market. Agents were counseled to search high and low to uncover potential homes for sale, look up expired listings, send out inquiries to neighborhoods where they have buyers, network and encourage those on the fence to sell. We need the inventory. Otherwise, we are experiencing fairly robust sales for this time of year, so it’s good to see that deals are actually happening, despite the low inventory. In Santa Rosa, we are finding that appropriately priced homes are still receiving multiple offers, as the pent up demand at the lower end is still evident. Many homes are coming on to the market at prices that seem to be low for the market. This may be due to agents determining price with their sellers and then by the time they actually come to market, other buyers on comparable homes have already bid the comparable sales higher. This lag in timing is proving to be a challenge for appraisals, but is often taken care of by the buyer bringing more cash to the table. Inventory across all price categories for Single Family dwellings in Sonoma County is down approximately 20 percent from early June of this year.
San Francisco – While some agents report a slight drop in traffic and activity, most offers remain multiple, our Lombard office manager reports. A number of pre-emptive offers were made this week, as buyers will pay a premium to avoid open competition. Market Street agents are looking for inventory as most listings continue to receive multiple over-asking offers. Buyers are out in force (one modest house near Glen Park BART had over 100 groups during its first open house), and savvy agents continue to get their buyers in to properties pre-MLS when possible. In the Sunset district, open houses continued to be very active. Multiple offers are still the norm as majority of the ratified deals are in multiple offer situation. Listing prices continued to edge upward as sellers are starting to get aggressive in their pricing. In the preceding week our Van Ness office ratified 30 sales vs. 22 sales the week before. There is heavy competition for the finer north side of the City homes at record prices. Multiple offers on most sales.
SF Peninsula — We’re seeing busy open homes at every price point. One listing in South San Francisco listed at $449,000 had over 150 groups attending open houses both Saturday and Sunday. One San Carlos listing had six offers and will close well above asking. One Burlingame property listed at $1,449,000 just closed at $1,651,000 with cash purchasers. The scarce inventory is being snapped up and bid up in the price range under $1,500,000, our Burlingame manager says. Too few properties to meet the demand. There are currently 61 active and 16 pending listings in Hillsborough. Our local manager is starting to see interest in some of the most expensive properties that have been on the market for some months. Buyers are looking at end of year, low interest rates and the perception of softness in the 5+ million range and certainly in the 10 + million range. Our Half Moon Bay office said they need more inventory under the $1m mark. Sales are brisk in the $550k-850k range. In Menlo Park area, all price ranges are still moving. Good properties come on, they sell right away albeit with only one or two offers now. Our Palo Alto buyer’s agents have been winning in multiple offer situations, fortunately. Sales are up. Multiple offers are nearly 100%. Move up buyers are reluctant to market a home without inventory to move up to, our San Mateo manager says. They cannot use a contingency offer in this market where certainty is demanded in contracts. Low inventory continues to plague our market. Nearly 56% of all September closed escrows in our market place sold for the list price or more. Friday, we had 19 offers on a single family home in San Mateo listed at $799,000. Several of our agents are working with buyers who are writing offers with all cash or substantial down payments, short periods to close escrow, and despite our advice against a contingency free offer, still choosing to do so.
East Bay – Our Oakland-Piedmont manager said last weekend’s open house traffic was slower and it seemed as if there might not be as much competition for the listings. But that all changed in a flash as the week went agents found clients in competition with 11 offers, 8 offers, 15 offers and so it goes. Several clients who have continued to lose out in multiple offer situations are ready to do whatever it takes in their offers to get accepted. There is still a lot of cash winning the multiple offer battle at all price points. Even though inventory is decreasing, buyers continue to make offers, our Orinda manager says. Multiple offers continue resulting in many homes going into contract over asking price. Many cash offers and open homes heavily attended. In Walnut Creek, local inventory is still low. New construction has really become an alternative and even those projects are starting to sell out quickly.
Silicon Valley – The market’s been steady, our Cupertino manager reports. There were 180 groups at a fixer upper on a busy street in Sunnyvale listed for $728K with 47 disclosure packages handed out. Need we say more about the lack of inventory? There has been a recent uptick in agents getting their buyers into contract, our Los Gatos manager says. Buyers are continuing to struggle with meeting short time frames on multiple offers and whether or not they should waive their appraisal contingency. Our San Jose Almaden manager notes that multiple offers prevail. One listing came out at $610K and, after 2 weeks and no offers, they lowered the price to $589K. They got multiple offers in four days and sold for $625K, proving you cannot under price a home in today’s market but you certainly can over price one. And buyers only want it if other buyers want it as well. The psychology of today’s market. Willow Glen overall inventory is down slightly. Our manager says agents are seeing a slight decrease in the number of multiple offers and the bidding up and over list prices has leveled off. Demand for lower end to midlevel priced homes in the $400k to $600k range is still very strong. We continue to have sellers listing homes through the holiday season, and many may be trying to get on the market and in contract prior to the election and by the end of the year.
Tuesday, October 30, 2012
Pending Home Sales Show Slight Improvement
by Walter Molony
WASHINGTON (October 25, 2012) – Pending home sales were little changed in September but remain well above a year ago, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, edged up 0.3 percent to 99.5 in September from 99.2 in August and is 14.5 percent above September 2011 when it was 86.9. The data reflect contracts but not closings.
Lawrence Yun , NAR chief economist, said pending home sales continue to hold a higher ground. “Home contract activity remains at an elevated level in contrast with recent years, but currently appears to be bouncing around in a narrow range,” Yun said. “This means only minor movement is likely in near-term existing-home sales, but with positive underlying market fundamentals they should continue on an uptrend in 2013.”
Pending home sales have risen for 17 consecutive months on a year-over-year basis, leading to the solid recovery seen in closed existing-home sales this year. In September all regions were showing double-digit increases in contract activity from a year ago with the exception of the West, which is constrained by limited inventory.
The PHSI in the West, the index rose 4.3 percent in September to 106.9, but is only 0.8 percent above September 2011.
Housing affordability conditions are forecast to remain favorable through next year, with the 30-year fixed-rate mortgage staying near record lows for the balance of this year but gradually rising to 4 percent in the second half of 2013.
WASHINGTON (October 25, 2012) – Pending home sales were little changed in September but remain well above a year ago, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, edged up 0.3 percent to 99.5 in September from 99.2 in August and is 14.5 percent above September 2011 when it was 86.9. The data reflect contracts but not closings.
Lawrence Yun , NAR chief economist, said pending home sales continue to hold a higher ground. “Home contract activity remains at an elevated level in contrast with recent years, but currently appears to be bouncing around in a narrow range,” Yun said. “This means only minor movement is likely in near-term existing-home sales, but with positive underlying market fundamentals they should continue on an uptrend in 2013.”
Pending home sales have risen for 17 consecutive months on a year-over-year basis, leading to the solid recovery seen in closed existing-home sales this year. In September all regions were showing double-digit increases in contract activity from a year ago with the exception of the West, which is constrained by limited inventory.
The PHSI in the West, the index rose 4.3 percent in September to 106.9, but is only 0.8 percent above September 2011.
Housing affordability conditions are forecast to remain favorable through next year, with the 30-year fixed-rate mortgage staying near record lows for the balance of this year but gradually rising to 4 percent in the second half of 2013.
Saturday, October 27, 2012
Buyer Review: Impressed With Her Negotiation Skills
DeVonna has a can do attitude that kept us in the game and helped us get our dream home.
Thanks DeVonna!!!
Chip and Mina Reynolds
Tuesday, October 23, 2012
Mortgage Rate Outlook
Oct 5, 2012 — Even though some of the economic news was a little warmer this week, mortgage rates continued their downward drive. However, the decline this week was more muted than last week’s, and with the cumulative benefit of the Fed’s “QEternity” program of purchasing Mortgage-Backed Securities closing in on a quarter-percentage point, we may not have all that much room for rates yet to fall at the moment.
HSH.com’s broad-market mortgage tracker found the overall average rate for 30-year fixed-rate mortgages declined by just two basis points (0.02%) to 3.68%, a new record low, while the FRMI’s 15-year companion shed three basis points to land at a new record low of an even 3%. FHA-backed 30-year FRMs downshifted by just a single basis basis point, as the most viable option for credit- or equity-impaired borrowers trickled to a new low of 3.28%. Finally, the overall average rate for 5/1 Hybrid ARMs held fast at 2.70% for a third consecutive week, remaining at a record low.
The Fed’s program of manipulating mortgage prices is a two-edged sword, or at least a Catch-22. The Fed wants to see more economic growth, so it pushes mortgage rates down to help foster growth. If the economy is improving or does start to improve, the Fed will need to do less to achieve its goals, and mortgage rates would tend to rise with the improving climate… which in turn might temper growth. What to cheer for? Broad-based economic gains which take the Fed out of the picture, letting markets again discover the true price of mortgages? Or to root for interest rates to remain at artificially low levels, so that more homeowners can profitably refinance, or to see home prices reflated though the inducement of affordability-driven sales?
At some point, and for some time thereafter, we are likely to see both. How long such conditions — a rising economy with rock-bottom rates — might last is anyone’s guess at this point. The Fed has pledged to keep its foot on the gas even after the economy gets more fully underway, but that strikes us as a nervous time in the markets, indeed.
It would appear that the decline in rates has softened, at least for the moment. When the Fed announced its program, we reckoned it might have a value of a quarter-percentage point on rates given current conditions, and we’ll stand by that assessment for at least the moment. That being the case, and since much of that expected decline is now in place, we’ll call for rates to be about unchanged next week.
HSH.com’s broad-market mortgage tracker found the overall average rate for 30-year fixed-rate mortgages declined by just two basis points (0.02%) to 3.68%, a new record low, while the FRMI’s 15-year companion shed three basis points to land at a new record low of an even 3%. FHA-backed 30-year FRMs downshifted by just a single basis basis point, as the most viable option for credit- or equity-impaired borrowers trickled to a new low of 3.28%. Finally, the overall average rate for 5/1 Hybrid ARMs held fast at 2.70% for a third consecutive week, remaining at a record low.
The Fed’s program of manipulating mortgage prices is a two-edged sword, or at least a Catch-22. The Fed wants to see more economic growth, so it pushes mortgage rates down to help foster growth. If the economy is improving or does start to improve, the Fed will need to do less to achieve its goals, and mortgage rates would tend to rise with the improving climate… which in turn might temper growth. What to cheer for? Broad-based economic gains which take the Fed out of the picture, letting markets again discover the true price of mortgages? Or to root for interest rates to remain at artificially low levels, so that more homeowners can profitably refinance, or to see home prices reflated though the inducement of affordability-driven sales?
At some point, and for some time thereafter, we are likely to see both. How long such conditions — a rising economy with rock-bottom rates — might last is anyone’s guess at this point. The Fed has pledged to keep its foot on the gas even after the economy gets more fully underway, but that strikes us as a nervous time in the markets, indeed.
It would appear that the decline in rates has softened, at least for the moment. When the Fed announced its program, we reckoned it might have a value of a quarter-percentage point on rates given current conditions, and we’ll stand by that assessment for at least the moment. That being the case, and since much of that expected decline is now in place, we’ll call for rates to be about unchanged next week.
Monday, October 15, 2012
SEPTEMBER MARKET STATISTICS
Home inventory was off 32.6% from last September.
The median price for homes rose 19.1% year-over-year. The median price has been higher than the year before for the past eight months. The sales price to list price ratio has been over 100% for the past seven months.
The average price for homes was up 18.6% year-over-year.
Pending home sales were up 8.7% year-over-year.
Where Have All the Sellers Gone?
Followers of the market report know inventory in Santa Clara County has been at or near record lows for the past year.
This has had a salubrious effect on prices. The median price for single-family, re-sale homes is up 29% year-to-date.
The 3-month moving average median price is up 51% from the bottom of the market: March 2009.
Where are all the Sellers?
Which brings us back to the question, “where are all the sellers?”
It’s pointless to read the national press on market conditions in Silicon Valley. They don’t apply!
There is no “massive shadow inventory”. There are no investors buying foreclosed properties in bulk.
With the economy as strong as it is here, people have jobs, so they’re staying put. Retirees are also staying put to be near their families.
Low Inventory Explanation
The only other explanation for low inventory is homeowners who are underwater. Yet, Santa Clara County has the lowest percentage of underwater owners in the state, about 25% according to DataQuick.
So, for the foreseeable future, we will have rising prices fueled by lack of inventory and multiple offers.
With money at an all-time low, and property prices still about 22% below their peak in 2007, those who have cash or can get a loan are in prime position to make a purchase.
Morgan Hill Housing Market and Options
If you would like to discuss the Morgan Hill housing market and your options, please give DeVonna Meyer a call today at (408) 981-4079.
Friday, October 12, 2012
Near Or Far, ALWAYS Use A Local Realtor
How Micro-Markets add to the dynamic of home pricing.
Our nation has trends as a whole, and trends within geographic locations. California certainly has micro-markets.
But our local markets also have sub markets; some even within the very same development.
Why does this matter to you?
Well whether you’re buying in Brentwood, Moragn Hill, or Timbuktu, you could lose a fortune if your agent doesn’t have intimate knowledge of the market that you’re buying or selling in. I strongly recommend doing your homework and finding a Realtor you trust with local area expertise.
Home prices are a function of the following variables:
•Demand or number of buyers with the ability and willingness to buy.
•The supply of properties on the market, including homes that our builders are selling prior to completed construction
•Interest rates – If a buyer can afford $2,000/mo….@ 3.5% interest, he/she may be able to purchase a home for $375k,
but if interest rates go up to 5.5% the purchase price would have to drop to $290k or so.
•Speculated future values of specific properties and real estate in general
•Consumer Confidence Level
•Other less impacting factors
Let’s compare two properties:
They are both in Brentwood, Both +/- 3,800 square feet, both 4 bedrooms, built in the mid 2000′s. Lot sizes are within 20% of each other. Both WERE in highly sought after areas, but one area “held on” better than the other, for very real reasons. An agent looking at these two properties might think that the discrepancy is not valid. That misinformation can and will cost you…one way or another.
Looking at two properties, you’ll see the same thing.
Similar homes, but the one with only two bedrooms is listed $90,000 higher than the 3 bedroom? In this area, and in virtually all areas throughout the world, this is common. These local market tendencies and trends will often differentiate home values for something as seeminly benign as being on opposite sides of the same street!
Using a local area expert that you can depend on is your best bet, whether you’re looking to buy or sell.
Contact DeVonna Meyer, your local Morgan Hill/Gilroy area expert, by calling (408) 981-4079 today!
Our nation has trends as a whole, and trends within geographic locations. California certainly has micro-markets.
But our local markets also have sub markets; some even within the very same development.
Why does this matter to you?
Well whether you’re buying in Brentwood, Moragn Hill, or Timbuktu, you could lose a fortune if your agent doesn’t have intimate knowledge of the market that you’re buying or selling in. I strongly recommend doing your homework and finding a Realtor you trust with local area expertise.
Home prices are a function of the following variables:
•Demand or number of buyers with the ability and willingness to buy.
•The supply of properties on the market, including homes that our builders are selling prior to completed construction
•Interest rates – If a buyer can afford $2,000/mo….@ 3.5% interest, he/she may be able to purchase a home for $375k,
but if interest rates go up to 5.5% the purchase price would have to drop to $290k or so.
•Speculated future values of specific properties and real estate in general
•Consumer Confidence Level
•Other less impacting factors
Let’s compare two properties:
They are both in Brentwood, Both +/- 3,800 square feet, both 4 bedrooms, built in the mid 2000′s. Lot sizes are within 20% of each other. Both WERE in highly sought after areas, but one area “held on” better than the other, for very real reasons. An agent looking at these two properties might think that the discrepancy is not valid. That misinformation can and will cost you…one way or another.
Looking at two properties, you’ll see the same thing.
Similar homes, but the one with only two bedrooms is listed $90,000 higher than the 3 bedroom? In this area, and in virtually all areas throughout the world, this is common. These local market tendencies and trends will often differentiate home values for something as seeminly benign as being on opposite sides of the same street!
Using a local area expert that you can depend on is your best bet, whether you’re looking to buy or sell.
Contact DeVonna Meyer, your local Morgan Hill/Gilroy area expert, by calling (408) 981-4079 today!
Tuesday, October 2, 2012
California Home Sales Up 6.7% in September
By Alejandro Lazo, Los Angeles Times
Bargain hunters snap up foreclosures, and the median home price continues to fall.
California home sales
picked up in September from the same month last year as prices came down.
Sales were up
6.7% as bargain hunters paying cash snapped up foreclosures. Sales figures remained below the average for September in Southern California and the Bay Area, according to DataQuick, a real estate information service based in San Diego. As is typical, sales were lower than in August, down 6.2%, for a total of 35,404 homes sold last month.
The median price
for a home sold in California in September was $249,000, down 6% from a year earlier and the same as in August. That makes for the 12th consecutive year-over-year monthly decrease in the median, which is the point at which half the homes sold for more and half for less.
John Walsh, DataQuick president, said the pool of potential buyers was growing, even though that demand has not yet shown up in the numbers.
“Empty-nesters want something smaller, growing families want something bigger,” he said. “People still die, they get married, retire — all of this generates demand. And only a fraction of that demand is being met in today’s market.”
Foreclosures
still accounted for a big chunk of the state’s housing market last month, as did short sales — transactions in which the bank allows a property to be sold for less than the value of the debt on the home. More than half the previously owned homes that sold in California last month were either foreclosures or short sales.
About 33.8% were foreclosures, down from a revised 34.3% in August and 35.6% in September 2010. Short sales made up 18.7% of the market, up from 17.5% in August and 15.6% in September 2010.
In the Bay Area,
sales were up 6.6% from the same month a year ago and down 10.2% from August, to 6,749. The median price for the region fell 7.6% from the same month a year earlier and was down 1.4% from August, at $365,000.
If you would like to discuss your real estate options, don’t hesitate to give DeVonna Meyer a call today at (408) 981-4079.
Bargain hunters snap up foreclosures, and the median home price continues to fall.
California home sales
picked up in September from the same month last year as prices came down.
Sales were up
6.7% as bargain hunters paying cash snapped up foreclosures. Sales figures remained below the average for September in Southern California and the Bay Area, according to DataQuick, a real estate information service based in San Diego. As is typical, sales were lower than in August, down 6.2%, for a total of 35,404 homes sold last month.
The median price
for a home sold in California in September was $249,000, down 6% from a year earlier and the same as in August. That makes for the 12th consecutive year-over-year monthly decrease in the median, which is the point at which half the homes sold for more and half for less.
John Walsh, DataQuick president, said the pool of potential buyers was growing, even though that demand has not yet shown up in the numbers.
“Empty-nesters want something smaller, growing families want something bigger,” he said. “People still die, they get married, retire — all of this generates demand. And only a fraction of that demand is being met in today’s market.”
Foreclosures
still accounted for a big chunk of the state’s housing market last month, as did short sales — transactions in which the bank allows a property to be sold for less than the value of the debt on the home. More than half the previously owned homes that sold in California last month were either foreclosures or short sales.
About 33.8% were foreclosures, down from a revised 34.3% in August and 35.6% in September 2010. Short sales made up 18.7% of the market, up from 17.5% in August and 15.6% in September 2010.
In the Bay Area,
sales were up 6.6% from the same month a year ago and down 10.2% from August, to 6,749. The median price for the region fell 7.6% from the same month a year earlier and was down 1.4% from August, at $365,000.
If you would like to discuss your real estate options, don’t hesitate to give DeVonna Meyer a call today at (408) 981-4079.
Coldwell Banker Names Top 100 Performing Agents
Did you know that DeVonna Meyer was just listed on Coldwell Banker’s Top 100 Performing Agents in the Monterey Bay Area?
Mortgage Rates Trimmed
Mortgage rates trimmed some of their recent rise last month. Economic news continues to be tepid, although somewhat better in tenor than that seen over the last few months.
In a speech before the monetary conference in Jackson Hole, Wyoming, Fed Chairman Bernanke reiterated the Federal Reserve stands ready to adjust policy to foster stronger economic growth. The message was exactly the one the Fed has been using for a while, but since the Chairman himself uttered it, some analysts believe there is an increased likelihood the Fed will embark on a new program to stimulate the economy before too long. As far as mortgage rates go, they could hardly be better, anyway.
California Home Sales Up 6.7% in September
By Alejandro Lazo, Los Angeles Times
Bargain hunters snap up foreclosures, and the median home price continues to fall.
California home sales picked up in September from the same month last year as prices came down.
Sales were up 6.7% as bargain hunters paying cash snapped up foreclosures. Sales figures remained below the average for September in Southern California and the Bay Area, according to DataQuick, a real estate information service based in San Diego. As is typical, sales were lower than in August, down 6.2%, for a total of 35,404 homes sold last month.
The median price for a home sold in California in September was $249,000, down 6% from a year earlier and the same as in August. That makes for the 12th consecutive year-over-year monthly decrease in the median, which is the point at which half the homes sold for more and half for less.
John Walsh, DataQuick president, said the pool of potential buyers was growing, even though that demand has not yet shown up in the numbers.
"Empty-nesters want something smaller, growing families want something bigger," he said. "People still die, they get married, retire — all of this generates demand. And only a fraction of that demand is being met in today's market."
Foreclosures still accounted for a big chunk of the state's housing market last month, as did short sales — transactions in which the bank allows a property to be sold for less than the value of the debt on the home. More than half the previously owned homes that sold in California last month were either foreclosures or short sales.
About 33.8% were foreclosures, down from a revised 34.3% in August and 35.6% in September 2010. Short sales made up 18.7% of the market, up from 17.5% in August and 15.6% in September 2010.
In the Bay Area, sales were up 6.6% from the same month a year ago and down 10.2% from August, to 6,749. The median price for the region fell 7.6% from the same month a year earlier and was down 1.4% from August, at $365,000.
If you would like to discuss your real estate options, don't hesitate to give DeVonna Meyer a call today at (408) 981-4079.
Tuesday, May 1, 2012
Your Home to Morgan Hill Real Estate
DeVonna has launched what has become one of the most successful real estate practices in the South Bay Area. She has earned designations as a Five Star REO Professional, along with recognitions as a Certified Short-Sale Professional and an Accredited Staging Professional.
DeVonna has become the host of a popular online TV series, The DeVonna Home Show, which showcases South Bay Area properties and some of her unique areas of expertise through a video diary.
Read more here.
Your Certified Negotiation Expert, DeVonna Meyer
An agent who carries the CNE (Certified Negotiation Expert) designation, like DeVonna Meyer, has been trained in professional negotiation skills by the Real Estate Negotiation Institute, the leading negotiation training and coaching company for real estate professionals in North America. A CNE professional knows how to use leading edge negotiation practices and techniques for your benefit. You can always be confident your CNE professional will achieve the very best results for you!
Monday, April 30, 2012
Real Estate Meets Reality
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