Monday Statistics

Monday Morning Update!



Good morning South County! Here are your weekly updates on what is happening in your neighborhoods. Feel free to contact me if you want more specific information. As of this week:


Morgan Hill has 157 active listings and 101 sale pendings


Gilroy has 132 active listings and 206 sale pendings


San Martin has 33 active listings and 15 sale pendings


Area 1 (all of the above) has 320 active listings and 322 sale pendings


Overall, last week our listing count increased while sale pendings decreased. I know two of my sales closed last week, one a home at Eagle Ridge in Gilroy (beautiful home on the golf course) and my La Bella listing in Morgan Hill. The Eagle Ridge transaction was a short sale which was accepted by the Seller in the beginning of February - it took 5 months to close! And my listing at 15665 La Bella Court (see photo) started out slow and then started to get multiple interest, which is indicative of any good listing right now. There is a lot of market activity right now and a lot of competition.



Stay tuned for regular updates!

New Bank Owned Property in Gilroy

Seven year old home at 8801 Zinnia Street in Gilroy just came on the market. This home has 4 bedrooms, 3 baths and 1892 square feet, is located on a 5343 square foot lot and is an attached home. Photos show it in good condition both inside as well as out. The price is very attractive at $341,900 - this is a very competitive price range and a good price for this home. So we'll watch and see how fast the status changes to pending. This bank is requiring proof of the earnest money deposit as well as a preapproval letter from a lender but is not requiring a buyer to use their lending department (some banks want a buyer to be preapproved with them but can't insist someone uses their company). Most banks will include an addendum with terms that protect the bank and limit the rights of the buyer - make sure your read the fine print! It usually applies to timelines for the buyer to perform and clarifies the limited knowledge a bank would have about a property. Transactions with banks are often as-is but I am told it doesn't have to be that way. Most banks will pay for repairs, just not up front so it depends upon whether the listing agent has the ability to deal with getting the money ahead of time.

My 2 cents - Make sure you read that addendum and don't be so quick to give up your rights.

Update on Tenant Information

C.A.R. Opposing Bill to Repeal Sunset on 60-Day Notice Requirement

Current law requires an owner of a residential dwelling to give at least 60-days' notice when tenants have been in occupancy more than 12 months, and at least 30 days' notice prior to terminations if any tenant or resident has resided in the dwelling for less than one year. SB 290 (Leno) would delete the January 1, 2010 sunset days on this 60-day notice mandate, which if left in place would repeal that requirement. C.A.R. continues to oppose SB 290 requesting amendments to require tenants to give the same 60 Days' notice that is currently required for residential rental property owners. SB 290 is currently pending on the Assembly Floor.

My 2 Cents - I think this is good information for landlords who need to be updated about the current laws. Stay tuned for more updates and changes regarding this law.

C.A.R.'s 2009 Survey of California Home Buyers

Favorable home prices, record-low interest rates, and the belief that rates will rise in the near future were the primary motivators leading home buyers to purchase in 2009 compared with last year, according to C.A.R.'s '2009 Survey of California Home Buyers' released this week. Sixty-eight percent of buyers said price decreases motivated them to buy a home, while 39 percent reported low interest rates helped them move to a better location. Twenty-three percent claimed the likelihood that rates will move up as the motivating factor.

"After back-to-back years of sharp declines, home sales in California rebounded in 2008 and early 2009," said C.A.R. President James Liptak. "The increase reflected the combination of favorable prices, low mortgage rates and home buyer tax credits, fueled primarily by sales of distressed properties that accounted for more than half of the state's transactions. Housing affordability has improved dramatically in response to the decline in home prices along with historically low mortgage rates, creating a tremendous opportunity for home buyers in California."

Forty-nine percent of all buyers purchased a home through a traditional market sale, while 38 percent purchased a REO/bank-owned property, according to the survey. Reflecting the difficulty in closing short sales -- properties selling for less than the loan amount -- only 13 percent of buyers purchased a short-sale property. Home buyers who purchased a REO or bank-owned property experienced the highest level of difficulty in obtaining financing, compared with a more traditional transaction. They rated the level of difficulty as 8.9 (on a scale of 1 to 10 representing the greatest level of difficulty in obtaining financing) compared with a 7.7 for home buyers with a traditional market sale and 7.6 for short-sale home buyers.

My 2 Cents - Thought this would be interesting information provided by C.A.R. although most of the above is not surprising. The 13 percent for short sale transactions does surprise me because of the volume of contracts written on short sales as opposed to the actual closed sales. Puts some perspective on the frustration of dealing with this kind of transaction.

Home Sweet Home

Another New Morgan Hill Listing

This home is located at 17200 Birch Way in Morgan Hill which is over in the Greenleaf subdivision. 3 Bedrooms, 2 Baths with 1220 Square Feet on a 7020 Square Foot lot. Looks like a cute, modest home with good use of the backyard, large rear yard with pergola and lawn. Home has pride of ownership, dual pane windows and tile floors and is located in the Nordstrom attendance area (careful of this - location doesn't always guarantee placement). Worth checking out but seems a little high compared to the listing at 155 Foothill Court which we looked at yesterday. Right now there are 108 homes under contract and pending close, healthy amount of buyer activity. I'll keep you posted on these homes and let you know when they sell. This is the price range that is moving right now as entry level buyers have opportunities due to lower prices and great interest rates (even with the recent increases) along with some of the current loan programs and tax breaks.

New Listing in Morgan Hill

New Listing at 155 Foothill Court in Morgan Hill





This 4 Bedroom, 2 Bath home looks cute with 1463 Square Feet on a 7440 Square Foot Lot. This is an older home of 46 years but has been well maintained and updated - hardwood floors, crown molding & base, ceiling fans, attic fan, remodeled bathrooms, wood burning fireplace, double paned windows, recessed lighting, newly covered patio, newly painted interior & exterior. This is a good price range for this market and sounds like it has been very well maintained. The only negative that I see right off is the location which is right by the cemetary which turns a lot of people off (but not all). I'll keep you posted and let you know how long it lasts on the market. Right now it's been on less than a week. Also, this is not bank owned or a short sale - which is a plus in this market.

Monday Morning Update!

Monday Statistics

Good morning South County! Here are your weekly updates on what is happening in your neighborhoods. Feel free to contact me if you want more specific information. As of this week:

Morgan Hill has 147 active listings and 109 sale pendings

Gilroy has 125 active listings and 212 sale pendings

San Martin has 33 active listings and 12 sale pendings

Area 1 (all of the above) has 303 active listings and 303 sale pendings

During the month of June, there were 50 closed sales in Morgan Hill, 55 in Gilroy, 6 in San Martin and 111 for the whole of Area 1 – that’s more activity and closed sales than we had in May, still pretty good and holding strong. Inventory continues to decrease and the quality of the listings in general is not that good across the board. Entry level homes are getting multiple offers and the market is some places (and some price ranges) are very competitive. There is a lot of activity in the market right now even with the rise in interest rates. More news to come - keep watching.

Stay tuned for regular updates!