Chief Economist for the California Association of Realtors Speaks Out
Leslie presented results from her recent survey of California homebuyers and sellers. Here are some of the highlights, insights that might aid you in your own decision making in navigating through the market:
1) Many of today's buyers and sellers are real estate rookies - 38% of buyers surveyed in 2009 were first-timers. That's up from 12% in 2002 and a historic high. 44% of sellers in 2009 were first-timers. That's a lot of people that have never been through a transaction. If you're anxious or confused about something, chances are the people on the other side of the deal are too. Be patient and recognize both sides are working toward the same goal of a closed transaction.
2) The market may be stabilizing, but buyer and seller expectations are far from matched. 70% of buyers surveyed in 2009 reported making one or more offers before closing on a property. 47% of buyers who had transactions fall apart cited seller unwillingness to accept comprises as the reason. If you're a seller this is yet another sign that buyers are out there - if you price right.
3) Buyers are not using the newspaper. Only 12% of buyers surveyed in 2009 used the newspaper to find their home. Moreover, a strong marketing plan ranked as the #1 reason sellers cited for choosing their agent. If you're a seller, don't get hung up on having your home in the paper - it's unlikely to make any impact on the sale of your home - but do make sure an agent has online bases covered.
My 2 cents - This market is still not quite settled back into balance at the same time the very nature of how homes are marketed and how consumers find them is changing. Keep an open mind and look toward a more efficient marketplace in the future.
Stay posted!
Tuesday, July 21, 2009
Monday, July 20, 2009
Monday Morning Statistics
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 148 active listings and 109 sale pendings
Gilroy has 136 active listings and 199 sale pendings
San Martin has 31 active listings and 15 sales pendings
Area 1 (all of the above) has 313 active listings and 323 sale pendings
Looks like inventory came down a little last week and pendings sales kept the status quo. Could be the rise in interest rates is contributing to the slow down. However, Gilroy is showing a little more activity all around than the the rest of Area 1. I'll keep you posted.
Stay tuned for regular updates.
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 148 active listings and 109 sale pendings
Gilroy has 136 active listings and 199 sale pendings
San Martin has 31 active listings and 15 sales pendings
Area 1 (all of the above) has 313 active listings and 323 sale pendings
Looks like inventory came down a little last week and pendings sales kept the status quo. Could be the rise in interest rates is contributing to the slow down. However, Gilroy is showing a little more activity all around than the the rest of Area 1. I'll keep you posted.
Stay tuned for regular updates.
Saturday, July 18, 2009
New Bank Owned Property on the Market in Morgan Hill
New Listing located at 955 Barrett Avenue in Morgan Hill
I don't usually include maps of properties but this one is important as you can see because of the location of the house to the freeway. We all discovered in our current market, Buyers are not so forgiving of freeway noise, high tension wires or anything that makes a home less than perfect. So what might be a good deal at the moment could turn into a problem later on down the road when you decide to sell. This is a 5 bedroom, 3 bath home with 1673 square feet located on a 4356 square foot lot and is only 3 years old. Pretty home in a new neighborhood but make sure you plan on living in this area for a long time or the price of $424,900 might not seem like such a good buy. Also, check out the schools in terms of where this home is located as Buyers are also very concerned with schools and their scores.
My 2 cents - Make sure you are factoring in resale later on down the line to make sure you are getting what you want now as well as a home that will allow you to make movement in your life later on down the line.
Friday, July 17, 2009
Relocating due to new job?
How to make a good decision about buying a home in a new area...
With the current economic situation , many home buyers have emerged as well as people relocating for new jobs. Finding the right home which also has the best chance of holding or increasing it's value can be challenging. There has been some study about areas where homes retain their values best in tough times and what factors they have in common.
For example, working with Realtors who are experienced and knowledgeable about an area can help with a good decision. Living closer to an urban area (i.e. where the jobs are) can increase the value of a home. Long commutes with high gas bills not only take their toll on homeowners but studies have found that prices have depreciated almost double compared to areas located closer to where the jobs are located.
Towns where zoning regulations make it more difficult to build have experienced smaller price declines than towns that experienced huge building booms in recent times. "Prices are more likely to go higher if you can't expand supply," says Danie McCue, research analyst the Harvard University Joint Center for Housing Studies. Towns nestled against barriers such as large lakes or protected wetlands also usually limit expansion.
Buyers can call towns or county planning offices and ask how many acres of vacant land are in town, how much of it is zoned for residences and the maximum number of homes that can be built. Requesting a copy of the town's master plan also should tell buyers how much the housing stock is set to expand in the next 10 years.
Homes in towns with stores, banks, and movie theaters are more likely to hold value than those that are nearly all residential, as people like to live near these services and jobs and provide the town a stronger tax base to fund public service items.
My 2 cents - Do your homework and find a realtor you can trust!
With the current economic situation , many home buyers have emerged as well as people relocating for new jobs. Finding the right home which also has the best chance of holding or increasing it's value can be challenging. There has been some study about areas where homes retain their values best in tough times and what factors they have in common.
For example, working with Realtors who are experienced and knowledgeable about an area can help with a good decision. Living closer to an urban area (i.e. where the jobs are) can increase the value of a home. Long commutes with high gas bills not only take their toll on homeowners but studies have found that prices have depreciated almost double compared to areas located closer to where the jobs are located.
Towns where zoning regulations make it more difficult to build have experienced smaller price declines than towns that experienced huge building booms in recent times. "Prices are more likely to go higher if you can't expand supply," says Danie McCue, research analyst the Harvard University Joint Center for Housing Studies. Towns nestled against barriers such as large lakes or protected wetlands also usually limit expansion.
Buyers can call towns or county planning offices and ask how many acres of vacant land are in town, how much of it is zoned for residences and the maximum number of homes that can be built. Requesting a copy of the town's master plan also should tell buyers how much the housing stock is set to expand in the next 10 years.
Homes in towns with stores, banks, and movie theaters are more likely to hold value than those that are nearly all residential, as people like to live near these services and jobs and provide the town a stronger tax base to fund public service items.
My 2 cents - Do your homework and find a realtor you can trust!
Thursday, July 16, 2009
New Bank Listing in Gilroy
6320 Berrybush Court, Gilroy
Not your typical REO home, good condition without needing a lot of work or TLC. Single story, valuted ceilings, open floor plan with ceiling fans and light fixtures. 3 full bathrooms, indoor laundry room, back yard with patio, hot tub, storage sheds and room for garden. Only 11 years old and good location on the west side of Gilroy, near Gavilan Colleage. This is a 4 bedroom, 3 bath home with 2045 square feet and located on a 6098 square foot lot. Should get offers soon and change status within the week but I will keep you posted.
Just for information purposes, four homes came on the market in Gilroy yesterday (and this was one of them). I did promise to keep you posted on my predictions and the home I wrote about last week at 17200 Birch Way in Morgan Hill did go under contract and is due to close the 15th of August. 
Stay tuned for updates!
Stay tuned for updates!Wednesday, July 15, 2009
Eagle Ridge Sale
Sometimes Short Sales Actually Work!
This sale closed last week in Eagle Ridge and I was the Selling Agent for this transaction. My clients and I wrote the offer which was accepted by the Seller early February. I have to tell you it felt like forever, living through the process. The hardest aspect of a short sale is the unknown. Even when you have a listing agent who is working with you and upfront, you don't know what is going on with the lender and their behind the scenes. Or if anything at all is going on with the lender. From an agents perspective, you see an incredible lack of organization and precedent that everyone is struggling with. Waiting for a short sale to come together is an incredible act of faith on the part of everyone but especially the Buyers. The market in February was very different than it is now when we have to deal with limited inventory, competitive situations, rising interest rates, time running out on the $8000 tax credit. Back in February we were still trying to decide if the market had hit bottom.
I remember showing this property to my Buyers. At one point they discovered the balcony on the master suite and that is where I found them with their arms around each other looking out onto the green and the views. Something clicked for me and it just felt like we had found their home. Although we never cut our options off and continued to look at the market and available homes, we stayed in there and never let go of the dream. This one came true and I have very happy Buyers who just happen to be great people.
Short sales can be tough, on everyone. There are ways to evaluate the risk and whether it makes sense to continue in the process but there is still an element of unknown that has to be dealt with. I know it was mostly hard work but I also feel there was an element of luck which I am very grateful for. It's a great feeling to be able to make something work and have a happy ending.
My 2 cents - Look at your short sale situation and weigh the pros and cons. Who is your lender, how many loans are you dealing with, are the agents being aggressive in the process or passive, are people communicating, do the agents know what they are doing, do you have all the available information. And don't cut off your options. Play it straight but make sure you are playing it smart and keeping your options open.
Tuesday, July 14, 2009
138 Days Left on the $8000 Tax Credit!
$8000 Tax Credit for Home Buyers
Unexpected, unusual and great to take advantage of is the $8000 tax credit. You are eligible if you are a first time homebuyer or have not owned a principal residence in the last three years. This is an $8000 gift from the federal government. If you qualify and buy a home while the program is available, you'll get $8000 back with your tax credit. If your adjusted gross income is more than $75,000 (or $150,000 for joint filers), then your credit will begin to shrink, depending upon your income. Also, the tax credit is for $8000 OR 10% of the sales price (if you buy a home worth less than $80,000 then you'll get a credit of 10% of that price).
There is a clock ticking on this credit. Your purchase has to be completed within January 1st, 2009 to November 30th, 2009. You will receive the tax credit after you buy your home. You can't use it for a down payment or other closing costs. But, for example, if you close on a house next month, you can file an amended tax return and get the $8000 right away. You do not have to wait until next year!
The tax credit is available for principal home purchases throughout the United States but is only for primary residences (not vacation property). The Administration and Congress created the tax credit to motivate buying and get the economy rolling again. Approximately 30 years ago during another economic downturn, the government offered $2000 tax credits and it helped get the economy back on tract at that time. An extra $8000 can really mean a lot to people all across the country.
P.S. Don't forget - allow 30 to 60 days to finalize your home purchase before the November 30th deadline.
Unexpected, unusual and great to take advantage of is the $8000 tax credit. You are eligible if you are a first time homebuyer or have not owned a principal residence in the last three years. This is an $8000 gift from the federal government. If you qualify and buy a home while the program is available, you'll get $8000 back with your tax credit. If your adjusted gross income is more than $75,000 (or $150,000 for joint filers), then your credit will begin to shrink, depending upon your income. Also, the tax credit is for $8000 OR 10% of the sales price (if you buy a home worth less than $80,000 then you'll get a credit of 10% of that price).
There is a clock ticking on this credit. Your purchase has to be completed within January 1st, 2009 to November 30th, 2009. You will receive the tax credit after you buy your home. You can't use it for a down payment or other closing costs. But, for example, if you close on a house next month, you can file an amended tax return and get the $8000 right away. You do not have to wait until next year!
The tax credit is available for principal home purchases throughout the United States but is only for primary residences (not vacation property). The Administration and Congress created the tax credit to motivate buying and get the economy rolling again. Approximately 30 years ago during another economic downturn, the government offered $2000 tax credits and it helped get the economy back on tract at that time. An extra $8000 can really mean a lot to people all across the country.
P.S. Don't forget - allow 30 to 60 days to finalize your home purchase before the November 30th deadline.
Subscribe to:
Posts (Atom)
