Mark's Blog

Monterey Peninsula Home Team - October's California Foreclosure Report

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Thu, 12 Nov 2009 21:37:31 -0600

FORECLOSURE SALES JUMP BY 21 PERCENT
Despite incease sales are still well below record levels

Discovery Bay, CA, November 12, 2009 - ForeclosureRadar (http://www.foreclosureradar.com/), the only website that tracks every California foreclosure and provides daily auction updates, issued its monthly California Foreclosure Report for October 2009. After 3 months of consecutive declines the number of foreclosure sales taken back by banks rose by 22.24 percent from September and 20.95 percent from October 2008. Despite these dramatic increases, the number of foreclosures taken back by banks remains 42.56 percent below the peak reached in July 2008, from which time the inventory of scheduled foreclosures has grown by 131.36 percent.

Click here to download the full report

Fore specific information about foreclosure opportunities in Monterey County, visit our website, http://www.montereypeninsulahometeam.com/ .

1258 Surf Avenue in Pacific Grove, CA - New HD Video

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Thu, 12 Nov 2009 16:13:41 -0600

Sales and Prices Up in October

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Wed, 11 Nov 2009 11:31:34 -0600

The median price for single-family, re-sale homes rose 4.3% compared to September. Year-over-year, the median price was off 15%.

The average price for homes gained 9.8% compared to September, and was down 12.4% year-over-year.

Sales of single-family, re-sale homes were up 21.8% month-over-month. Compared to last October, home sales were down 2.3%. Year-to-date, home sales are up 50.2%.

Inventory was off 62.9% year-over-year.

Our Days of Inventory indicator fell sixteen days last month to land at 75 days.

The sales price to list price ratio for homes stayed over 100% for the second month in a row: 100.7%.

Pending sales, a sign of future sales, was up 47.7% compared to last October.

Condo sales were off 24.2% from September, and were down 32.4% year-over-year. Year-to-date, condo sales are up 65.4%.

The median price for condos jumped 74.3% month-over-month, and was up 26.8% compared to last October.

Condo inventory was down 62.3% year-over-year.

The sales price to list price ratio for condos rose 0.7 of a point to 99.6%.

In September, it took an average of 61 days to sell a condo.

The real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or property, call me.

For this information broken down by major city in Monterey County, click here.

Home Buyer Tax Credit Extended - Monterey County

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Wed, 11 Nov 2009 11:18:33 -0600

	The Tax Credit Gets an Extension and an Expansion! Existing Homeowners: Now's Your Chance!

I am extremely pleased to share with you an exciting new tax credit, designed for first time homebuyers and existing homeowners.

The new bill calls for an incentive for existing homeowners who have owned their current homes at least five years, making them eligible for tax credits of up to $6,500 when they purchase a new home. First time homebuyers - or anyone who hasn't owned a home in the last three years - would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010 and close by June 30.

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.

As an industry, we are certainly pleased about this new tax credit. The key to returning stability to the economy lies within the housing market, and this is a meaningful credit that will create a strong foundation for future growth and make a measurable difference over the next seven months in our economy.

Furthermore, tax credits like this only work by creating the sense of urgency to take advantage of them. This is said to be the last extension of the home buyer tax credit and I urge people - whether you're a first time home buyer who has always dreamed of having a home of your own or someone who has been gridlocked in the challenges of our move-up market to take advantage of this opportunity.

1928 French Country Style in Monterey

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Wed, 02 Sep 2009 17:27:18 -0500

1928 French Country Style in Monterey

$949,500

1183 Alameda Street, Monterey CA

Features:

4 bedrooms, 3 baths
1928 French country style home
Old world charm and style
Hardwood floors
Mostly flat 1/4 acre plus lot
Great central Monterey location
www.1183Alameda.com

Remarks:
Have you sometimes driven by this home and wanted to own it? Now is your chance. This old world 1928 French country style home just inside Peter’s Gate is available. Set on a mostly flat large ¼ acre central Monterey lot this home has tremendous charm and curb appeal that is hard to come by with the new construction of today. With its’ story book windows, turret entry, steep-pitched shake roof and ancient oak tree, this home looks like it is right out of a Harry Potter script…Just add the fog! Inside it is as expected. The original hardwood floors look to be in fine condition. The old plaster walls are still holding up to the years. The living room has a cozy fireplace and the views through the windows are picturesque. There are a total of 4 bedrooms and three bathrooms and just over 2220 sq’ of living space. If you love older homes, this needs to be on your must see list. Call your Realtor® to schedule an appointment.

Monterey Peninsula Home Team
Mark Bruno & Lynda Nichols

831.626.2277 Mark

831.626.2276 Lynda

View Our Website

View Our Other Listings

Coldwell Banker Del Monte Realty

501 Lighthouse Avenue
Pacific Grove, CA 93950

831.626.2226

CA DRE# 01715978

©2007Properties Online, LLC, Patent No. US 6,760,707. The above information including square footage is based on data received from the seller and/or from public sources. This information is deemed reliable but has not been independently verified and cannot be guaranteed. Prospective buyers are advised to verify information to their own satisfaction prior to purchase.

Impeccable Condition with Views of Monterey Bay

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Wed, 02 Sep 2009 17:18:07 -0500

Impeccable Beach Tract Home with Views of the Bay

$1,249,500

1017 Jewell Ave, Pacific Grove CA

Features:

4 bedrooms, 3 baths
Fantastic Monterey Bay views
Craftsman-like styling on the inside
Large master suite
Stainless steel appliances
Close to all Pacific Grove has to offer
www.1017Jewell.com

Remarks:
You must see this custom built Pacific Grove gem located in the coveted beach tract area with stunning views of Monterey Bay. Ideally located within walking distance to all Pacific Grove has to offer; fine dining and shopping downtown, the craggy coastline, Lover’s Point beach and the Pacific Grove Golf Links. This home is handsome from the curb and has been impeccably maintained over the years. Its stucco and wood exterior hints at what lies on the inside. Large sheets of glass allow ample amounts of light in, making this split level two story home a joy to spend time in. From the touches of craftsman styling seen in the exposed wood beams, railings, window trim and built-ins to the hint of old Mexico with the Saltillo tile flooring in the entry and living room, this property is a treat to the eyes and feels almost spa-like. And, at over 2200 sq’, with 4 bedrooms and 3 baths, there is plenty of room to accommodate friends and family. This home is in excellent condition and ready for its new owners to move in. Call your Realtor® for a private showing of this very special property.

Monterey Peninsula Home Team
Mark Bruno & Lynda Nichols

831.626.2277 Mark

831.626.2276 Lynda

View Our Website

View Our Other Listings

Coldwell Banker Del Monte Realty

501 Lighthouse Avenue
Pacific Grove, CA 93950

831.626.2226

CA DRE# 01715978

Has An Appraisal Killed Your Transaction?

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Wed, 02 Sep 2009 17:08:44 -0500

Not sure what is going on in your neck of the woods, but out here our biggest battle has been with the banks and there appraisals. Lately I have seen many transactions go south because of an appraisal that is way out of bounds. The new rules seem to be making things worse on buyers instead of better.

Here is a link to a great article about this topic. If it was already posted, my apologies for the repost, but it is worth a second read.

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/07/05/RELE18FM31.DTL

Let me know how your market is affected by this "new and better" process.

Mark

June Shows Signs of Recovery in Monterey Peninsula, California and Surounding areas

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Thu, 23 Jul 2009 16:13:54 -0500

Greetings from the beautiful Monterey Peninsula, CA (Carmel, Pebble Beach, Pacific Grove, Monterey, Seaside, Marina) . Here is our Market Flash for June of 2009.

The market continues to show signs of either being at the bottom or being very close to it depending on what price range you are looking at. Lynda and I continue to work very hard, particularly on the lower end properties (under $350,000) where it has now become a "seller's" market based on a lack of inventory and a bunch of prequalified buyers. If you have good credit, purchasing a property in this price range is finally comparable to renting with interest rates as low as they are. We are still seeing multiple offers on just about every home priced under $350,000! Most end up selling for right around full price and we are even starting to see prices increase slightly. I don't believe this is a trend yet as there are supposedly a glut of foreclosures on the way that the bank has been holding onto.

Our seasonal increase in sales activity materialized this summer, especially in the middle price ranges with the second home buyers, although sales are still way below normal levels in the middle price ranges. The high end is still pretty slow although there has been a flurry of activity over the last 30 days centered in Pebble Beach, Carmel and Pacific Grove. There were even reports of multiple offers on a $10+ million property in Pebble Beach!

We have also been working hard to market our listings and have been getting incredible amounts of exposure for our client's homes utilizing both traditional print advertising and the internet. We have seen a flurry of offers over the past 60 days, but they are very difficult to keep together as buyers are very particular and buyer's remorse seems to be playing a key role. Seller's need to hang in there and remember it is a buyer's market unless you are priced like a distress property. Two of our current listings are in escrow with all conditions removed and we have offers on three others! It has been busy!

Thank you to those of you who have referred your friends and family to us for their real estate needs! We are extremely lucky to have so many great clients who refer us business all year! You are truly the lifeblood of our business and we appreciate you putting your trust in us!

Let's talk about what is going on here.

First, let me define what I mean by a "sale." These are any properties that have an accepted offer and go pending during the specific month. Some of these will fall out of escrow, but most will eventually close. The reason I am using "pendings" as a barometer is that is gives a good snap shot of how many buyers are actually finding properties that they are willing to make an offer on and since most agents are requiring a pre-approval letter with the offer, they are "qualified buyers" as well.

Like the last report, Monterey County is STILL a story of three price points. There are the high end properties, let's call it over $2,000,000, the lower end, say under $400,000, and everything in the middle.

The high end actually slowed a bit in June when compared to May. However, we seem to be seeing things pick up a bit over the last week or so of June and into July. I think the July numbers will show a little uptick.

The story in the middle is much the same as it was in May. If anything there is a lack of quality inventory to choose from and sales have slid just a bit. The middle is a wide range of prices from $400,000 all the way up to $1,999,999 and normally would represent several different market segments. However, this entire range was suffering from the same set of issues which is a lack of loan programs to service a large portion of this price range and a lack of step up buyers due to their inability to sell there property for a profit. Bank of America has come out with a pretty good jumbo loan program and the Feds have allowed the conforming loan limit to increase to $729,750. With these two new programs hitting in March, we saw a flicker of activity here. It seems to have cooled a bit in June again due to a lack of step up buyers in this range.

The overwhelming majority of the sales activity is in the lower price ranges, under $400k. In February and March there was an average of 300 sales per month compared to 646 in April!!! Things have cooled a bit due to a shortage of inventory to only 460 sales in June. Things are still in high gear in this price range. There are a lot of buyers waiting on inventory. Once the banks release the foreclosures they are sitting on, things will pick up here again. The biggest issue Lynda and I are having now is a lack of quality inventory in this price range. Anything nice has multiple offers and is going into escrow almost immediately. It is not uncommon for our buyers to offer on 5-6 homes before getting an offer accepted! Active inventory levels are down to under 2 months supply based on the current rate of sales! Patience is key for our entry level buyers!

The sheer number of properties selling in this lower price range combined with the lack in high end sales is the driving force behind the Monterey County average price and median price steep decline. We are starting to see the average price come up a bit, but with this type of volume in the lower price range it will be awhile before we see any significant changes in either statistics. Just remember the middle price ranges are steady, which can be an indicator of the market getting close to the bottom there as well.

The Monterey County Sales for June broke down as follows:

$4M+ - Zero sales
$3.99M-$3M - 1 sales (Carmel Highlands)
$2.99M-$2M - 6 sales (1 in PB, 4 in CAR & 1 in CV)
$1.99M-$1M - 13 sales (7 in CAR, 3 in PB, 1 in CV,1 in MRY & 1 in SS)
$999k-$900k - 5 sales (2 in MSH, 1 in MRY, 1 in CAR & 1 in PB)
$899k-$800k - 6 sales (2 in CAR, 2 in MRY, 1 in CV, 1 in PG, 1 MSH, 1 PB)
$799k-$700k - 13 sales (3 in CAR, 2 in MSH, 2 in CV, 1 in PG, 1 in MRY, 1 in SS, 1 in SAL)
$699k-$600k - 14 sales - (4 in PG, 3 in MRY, 3 in SS, 2 in NMC, 1 in CV, 1 in CAR)

$599k-$500k - 15 sales (5 in NMC, 4 in PG, 3 in MRY, 1 in MSH, 1 in SAL, 1 in SS)
$499k-$400k - 24 sales (7 in SAL, 6 MAR, 3 in SMH, 2 in PG, 2 in NMC, 1 in MRY, 1 in DRO, 1 in CV & 1 in Big Sur)
$399k-$300k - 72 sales (28 SAL, 21 NMC, 7 MAR, 9 SS, 3 SMC, 2 MSH, 1 PG & 1 DRO)
$299k-$200k - 137 sales (74 SAL, 27 SMC,18 NMC, 9 SS, 4 MAR, 1 MRY)
$199k-$100k - 208 sales (117 SAL, 75, SMC, 10 NMC, 5 SS & 1 MSH)
<$99k - 43 sales - (18 SMC, 24 SAL, 1 NMC)

It's a great time to be a first time buyer! Programs are great, interest rates are at historical lows...Many who thought they would never be able to buy a home here are able to purchase one right now! Both Lynda and I have been working with a lot of first time buyers who can now afford to own a piece of real estate here on the Peninsula! The only thing you need to remember is it is now getting very competitive in the lower priced markets. Multiple offers are becoming the norm again! Who would have thought that was possible so quickly?

It is also a great time to purchase investment property here. For the first time in longer than most can remember, there are investment properties that pencil out and either break even or even make a couple of bucks! Give us a call to discuss opportunities.

The real estate market is very hard to generalize. It is a market made up of many micro markets. For detailed history of a particular cities statistics, visit our website's Monterey County RE Stats page. For complete information on a particular neighborhood or property, give us a call.

Both Lynda and I hope this was informative and that you enjoy receiving these monthly updates. If you know of anyone who could benefit from this information or who would just be interested in reading it, please feel free to forward it on or send me their name and email address and I can add them to our list of recipients.

Take care,

Mark Bruno

www.MontereyPeninsulaHomeTeam.com

Oh by the way, if you or anyone you know is interested in buying or selling a home, we are never too busy for any of your referrals!

Home Sales Continue Rising in May, Prices Down

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Sun, 07 Jun 2009 19:24:51 -0500

Sales of single-family, re-sale homes were up 77.1% in May, year-over-year. Year-to-date, home sales are up 133.8%. Home sales are at their highest level, through the first five months of the year, since we've been keeping track: 1997.

The median price for homes fell 4.7% from April, and was off 42.2% year-over-year.

The average price for homes dropped 10.6% compared to April, and was down 46.2% year-over-year.

Inventory continued to fall, dropping 54.7% compared to last May. Our Days of Inventory indicator fell seven days last month to land at 99 days.

The sales price to list price ratio for homes rose 1.1 points to 99%.

Days on market fell seven days to 73 days.

Condo sales were down 34.9% from April, but were up 211.1% year-over-year. Year-to-date, condo sales are up 111.4%.

The median price for condos fell 15.3% month-over-month, and was off 76.6% compared to last May.

Condo inventory was off 52.3% year-over-year.

The sales price to list price ratio for condos fell 2.3 points to 93.3%.

In May, it took an average of 99 days to sell a condo.

The real estate market is very hard to generalize. It is a market made up of many micro-markets. For complete information on a particular neighborhood or property, call me.

The Basics: 2009 First-Time Home Buyer Tax Credit

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Sun, 07 Jun 2009 19:05:42 -0500

The Basics: 2009 First-Time Home Buyer Tax Credit

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.

WHO QUALIFIES?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009. To qualify as a first-time home buyer the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

WHICH PROPERTIES ARE ELIGIBLE?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single family homes, condos, townhomes, and co-ops.

HOW MUCH WILL THE CREDIT BE?

The maximum allowable credit for home buyers is $8,000. Each home buyer"s tax credit is determined by two factors: The price of the home - the credit is equal to 10% of the purchase price of the home, up to $8,000. The buyer's income - single buyers with incomes up to $75,000 and married couples with incomes up to $150,000 - may receive the maximum tax credit.

IF THE BUYER(S)' INCOME EXCEEDS THESE LIMITS, CAN HE/SHE STILL GET A CREDIT?

Yes, some buyers may still be eligible for the credit. The credit decreases for buyers

who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income - over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

WILL THE TAX CREDIT NEED TO BE REPAID?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

TAX CREDIT CAN BE USED ON CLOSING COSTS

FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban development on so-called home buyer tax credit loans that was released today. Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent. The loans can't be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.

Showing Activity In the Entry Level and Mid-Level Markets Continues to Rise

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Sun, 07 Jun 2009 18:43:31 -0500

Now that school is almost out, we're finding many families are starting to look at homes in anticipation of getting settled prior to next school year. Showing activity in many markets has increased considerably.

Sellers are getting their homes on the market and, in general, seem to be quite receptive to staging and pricing strategies. The homes in the entry-level market are moving well if they are in good condition, and if fairly and competitively priced. We are seeing multiple offer situations in most of our first time home buyer markets. The price point for this activity is of course different by county, and by specific MLS zones, but this week as I visited several Santa Clara County and Marin County offices - I was told about numerous multiple offer situations garnering 10 to 20 offers in the $400,000 to $500,000 range. One property listed at $399,000 (in a mid-$400's neighborhood, I believe) received over 50 offers.

Though we have seen sporadic new activity in the upper end market, it is still relatively slow for properties over $2M. The month's supply of inventory for high end properties is more than triple that of homes listed under $800,000. Having said that, we also need to make note of the current momentum we're starting to see in our offices in the high end. Just looking at one particular day this week, among many other sales, we closed escrow on homes ranging from $1.7M to $2.7M in Palo Alto, Carmel, and Mill Valley, and a home in Los Altos Hills just shy of $3M.

The most notable news this week was The Mortgage Bankers Association's (MBA) release of is Weekly Mortgage Applications Survey for the week ending May 29, 2009. The Market Composite Index, a measure of mortgage loan application volume, was 658.7, a decrease of 16.2 percent on a seasonally adjusted basis from 786.0 one week earlier but was 14.4% higher than the same week a year ago. This increase is due, largely in part to the first time home buyer market which, as we know, has been vastly stimulated by low interest rates, the $8,000 first time home buyer tax credit and increased affordability. Together these incentives are finally getting buyers in the first time home buyer market off the fence and into the market which is why we are starting to see some price stabilization at this level.

While entry level prices currently seem to be on an upward trajectory, it will take some time to return to the median price levels of our pre-recession market. A recent study notes that US real estate is now as affordable as it has been in the past 38 years (this of course relates to median homes when compared to median mortgage rates and incomes). The fact is, the peak of unaffordability was in 2006, when an average family in the United States needed to spend 44% of their monthly income toward the purchase of an average single family home.

A couple of other interesting articles of note this week:

- RISMedia's First Time Home Buyers Grabbing Houses and Tax Credit (http://rismedia.com/2009-06-03/first-time-home-buyers-grabbing-houses-and-tax-credit/)

- Realty Times Multifamily Builder Confidence Up From Record Lows; Interest From Prospective Renters and Buyers Rises (http://realtytimes.com/rtpages/20090603_confidenceup.htm)

- Realtor.org Pending Home Sales Up For Three Months in a Row (http://www.realtor.org/press_room/news_releases/2009/06/phs_up)

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

East Bay-Berkeley reports we were inundated with multiple offers this week and large turnouts at open houses. 75% of our deals this week saw multiple offers, any number from 2-8 on seller owned and 12-18 on bank owned. Cash is still king on many deals because of increasing anxiety about appraisals. Castro Valley reports we are still facing an inventory shortage here in our micromarket. We are seeing cash offers everywhere and one Agent reports that she has been outbid from the last five offers she has written by all cash deals. The number of multiples in the low range markets has been in the range of 10-60 offers, to give you an idea as to the inventory shortage we are facing here in our micromarket. Agents are waiting for banks to release more REOs. One thing is certain, we are definitely a recovering market. The Danville office reported the activity level is good but we need more inventory. Lots of buyers are jumping off the fence. The Fremont office is reporting the market is becoming competitive in the Tri-City area. The listing inventory is reducing. The Livermore office reports our pending sales are up in the office and the overall market in the Tri-Valley area remains strong. Multiple offers are still the rage below $500,000. The Pleasanton office reports homes under $450K are moving very fast with multiple offers.
Monterey County-Market continues to have lots of activity in the lower price ranges and slower as price range goes up, as only 25 properties in Carmel and Pebble Beach have sold for over $2 million in the first five months of this year, with highest at almost $8 million. As is typical for end of the month, we had a good week for closings, even though Monday was a holiday, with 14 closed sales ranging in price from an incredibly low $128,000 in Seaside to a lot in Tehama at $1,325,000.
North Bay-The Petaluma office reports that the frenzy continues as buyers compete for entry level homes that are in the $200-$400k (2 years ago were $500-$600k) across the board these homes have multiple offers and are typically going into escrow over the asking price. One home on the west side of Petaluma had 32 offers and went $80,000 plus over asking. With inventory shrinking and more buyers entering the market we are seeing an upswing in median price in this segment of the market (under $500,000). Is this the bottom in that price range? Looking for more inventory REO or otherwise. The $500-700k market is starting to pick up. Inventory in the million dollar plus market is accumulating fast. Not as many buyers in that market. But there are some circling. Our San Rafael office reports there has been an increase in multiple offers over the past week in the price point of $300-500k in San Rafael and Novato. We ratified an offer on a home listed in Novato for $2.1mil. Our Southern Marin office reports quite a week in So. Marin, from a $2,725,000 Mill Valley closing where we represented both ends, to six offers on a $679k Corte Madera listing in our office. For the first 5 months of the year, Mill Valley is 24% down in sold units vs. same period a year ago and 18% down in average sales price, Sausalito is 43% down in units vs same period a year ago, and 15% down in average sales price and Tiburon is 57% down in sold units and 2.4% down in average sales price.
Peninsula-The Agents feel that we may be seeing the bottom in the North County and in the lower price points. The inventory has been greatly reduced in these areas and multiple offers have become the norm. The $1mil to $2.5 range is still slower and many buyers are concerned with availability of mortgage money. We still are seeing cash buyers however and others with large down payments. Our Menlo Park El Camino office reports we are still getting multiples on low end and well priced properties. Some Agents feel that buyers are beginning to realize what great rates are out there and afraid they are going to go away. They want sales contingent on COE not just a sale of their properties. Sellers will take LOWER offers if they feel it has a higher chance of closing. Very cautious clients, very risk-averse. Our Menlo Park Santa Cruz Avenue office reports one sale in Menlo Park (list price $799k) which sold with four offers and went substantially over list. Good feedback from Agents who held open houses. Buyers are out in full force. Palo Alto reports the following year to year comparison: The first three months of this year were slower, as far as closed sales compared with the first three months of last year. Months four and five of last year were actually slower than months four and five this year. Yet, we are one closed escrow short of last year per the MLS here in Palo Alto. Hopefully optimistic a trend going up.
San Francisco-The Lombard office reports the lower the price the more offers. As price goes up flawed properties and not price presented well are sitting. A couple of investment property closings this week, and completing the financing was extremely difficult. The Market Street office reports multiple offers were the order of the day with mostly two offers, but one received three and one received four. Negotiations in most cases are still lengthy. Great traffic at open houses over the weekend and Agents are seeing more private showings. Buyers are coming back three and four times before writing the offer.
Santa Cruz County-Agents are busy writing offers and June is starting out to be a stronger month than we have had the past few months. Inventory levels remain low; we are seeing multiple offers on homes that are not bank owned. Short sales continue to be a big part of the market and the timeframes remain slow and cumbersome for moving through the process in most cases. We know the pent up buyer demand is there and as rates start to creep up - it may bring more of them to the table ready to write.
Silicon Valley-Our Cupertino DeAnza office reported Agents are frustrated dealing with REO/Short Sale listing Agents who don't return calls or emails. On a positive note, we had a number of sales over $1M and one over $2M. Our Los Altos office reported buyers are making offers on the lower end homes. The higher end price tiers are slower in both the condo and single family homes. The San Jose Almaden office reported inventory is still shrinking and bringing more pressure to bear on our low end market in every area. I hear of multiple offers in all parts of our county. From Los Altos to Gilroy, it is not just limited to REO bargains anymore. The only criteria are that it has to be priced for this year's market-not previous years. One traditional sale in Sunnyvale sold for 2% above list in as many days with back up offers in place, high $800,000 price range. Of those who report to me on open homes, I hear they're busy. Time is running out for the first time buyers who are waiting for whatever... prices to drop, interest rates to fall further or more government concessions. Bottom was two months ago and we need to get that word out! Our San Jose Main office reports activity continues to be brisk in the lower price range of $250K to $550K with multiple offers on many properties. Activity in the upper price range is slow. Open houses in all price ranges were very active this past weekend. Increase in interest rates the past week may slow our current busy market.
South County-The real estate business cycle here in the South County has remained unchanged for the last several months. Entry level (investment properties) priced between $300,000 and $400,000 are selling with multiple offers. Upper end homes are still languishing on the market. Inventory is decreasing and demand remains high. This may result in prices (and values) moving upward.

It seems we've enjoyed another week in SF Bay Area real estate much like the past several weeks; stabilizing if not increasing prices in the entry level, and a nice up-tick in the mid and higher price points. The delayed Spring selling season continues - at least for another week.

All the Best,

Rick

Rick Turley

President, San Francisco Bay Area

Coldwell Banker Residential Brokerage

NAR Announces Housing Affordability Highest in 18 Years!!!

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Mon, 25 May 2009 12:44:43 -0500

NAR Announces Housing Affordability Highest in 18 Years - And Many Offices Report Increased Activity in High End Sales

For months I've been sharing that this is one of the best times to purchase a home in decades. This week the National Association of Realtors underscored that fact -stating that nationwide housing affordability jumped 10 percentage points during the first quarter of 2009 to its highest level since the series began 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). The HOI showed that 72.5% of all new and existing US homes sold in the first quarter of 2009 were affordable to families earning the national median income of $64,000, up from 62.4% during the previous quarter and up from 53.8% during the first quarter of 2008.

Locally, the story is much more dramatic. In the San Francisco-Peninsula area, 32% of all new and existing homes sold in the first quarter of 2009 were considered affordable to families earning the area's median income of $96,800. That's up 60% from the previous quarter and up an incredible 146% from a year ago, when the index was a paltry 13%, one of the lowest affordability ratios in the United States.

Follow the link below to get the historical charts and details on North Bay, East Bay, Silicon Valley, and Santa Cruz, as well as many other Metros in the US.

http://www.nahb.org/page.aspx/category/sectionID=135

Below you'll find a few more news stories of interest from the week:

Many of you have asked me questions about the potential changes in the $8,000 first time buyer tax credit (http://www.realtor.org/RMODaily.nsf/pages/News2009051202?OpenDocument). Essentially the U.S. Department of Housing and Urban development announced on May 12^th that the Federal Housing Administration would permit its lenders to allow home buyers to use the $8,000 first-time homebuyer tax credit as a down payment. FHA's approved lenders would be permitted to "monetize" the tax credit through short-term bridge loans. This would allow eligible buyers to access the funds immediately at the closing table. Here is a CNN Money article which explains some of the details: http://money.cnn.com/2009/05/18/real_estate/tax_credit_as_downpayment/index.htm?postversion=2009051912

I must caution that the execution of this is quite complicated and it may take some time before it becomes a reality. By late this week, there were already comments coming out of Washington that this may have been released a bit prematurely, and there is no guarantee that it will be successfully implemented. HUD would need to authorize lenders, non-profits and certain agencies to provide a bridge loan which would then be reimbursed at the time of tax refund. These players are not yet identified. Again, an encouraging and useful tool, but the execution and timing of it have yet to be fully outlined. Watch for more to come.

Most of the news lately has been about the brisk pace of sales at the entry level, where multiple offers are becoming the norm. The median price, although increasing slightly in April over March in the Bay Area, had previously been falling due to the heavy activity in foreclosures at the low end. That said, I thought it important to contrast this with what I'm seeing day to day at the branch office level at the other end of the market. Here is an incomplete list of some of our Coldwell Banker Bay Area closings just this past week:

$7+ Million - Atherton

$5+ Million - Portola Valley

$4.8 Million - San Francisco

$3.2 Million - Santa Rosa

$3 Million - Hillsborough

$2.9 Million - San Francisco

$2.9 Million - Belvedere

$2.6 Million - Los Altos

$2.2 Million - Menlo Park

$2 Million - Los Altos

$2 Million - Monterey

Many more in the $1 to $2 Million range

You won't likely be reading about this activity in the Chron or the Mercury News - not because I'm not telling reporters about it in recent interviews, but because their focus is elsewhere. I feel everyone should know that besides these recent closings, nearly every office is reporting ratified offers and new Pending Sales in the higher end the past week or so - which is not what we were seeing a few months ago. You won't hear me calling this a trend (yet) - but it sure is nice to see strong activity and confidence in the high end.

And with that update in tow, let's take a look at this week in real estate:

East Bay-Berkeley shares that the market is still fast and furious at the lower price points with as many as 15 offers on some properties. Lenders and sellers are choosing all cash buyers, even if their offer is not the highest. There is some concern that these all cash bargains, usually from investors, are artificially driving down neighborhood value, since the fact that there were ready, willing and able buyers who would have offered more is not taken into account. Buyers are also asking what number to put into their offers for loan/appraisal time. Good question. Some Agents are using the number of days given to them by the buyers' loan officer, others advising to the check the "until funded" box in the contract. Castro Valley reports The Today show this week featured the Top 5 recovering cities for the country as related to the housing market. SF Bay Area was featured as number 5. It seems to correlate with the market trends that we have been experiencing lately. Short sales remain the market wildcard. In researching a property we recently wrote an offer for, we found that there was a $200,000 spread between the offer prices between two pending deals on the same street, one was REO and the other short sale. Daily operations remain busy. Oakland reports the market is really active in all price ranges. It has been steady now for all of April and now May. I think our spring market has arrived. Most of the multiple offer scenarios are two offers but occasionally one generates a large number and those are usually under-priced homes. Appraisal issues are now cropping up in escrows and they are taking much longer to close. Negotiations are more protracted. Short sales are active in every price range. Even some of the foreclosures coming on the market now seem to be in better Oakland neighborhoods. Orinda reports open homes are heavily attended and multiple offers are increasing. Sales in the luxury market are on the rise.
Monterey County- Slow but steady continues to be the pace here on the Monterey Peninsula, though the market is quick moving just east of us in the under $400,000 REO market. Many properties over $1.5 million continue to be listed; in fact, there are 283 such properties now listed on Monterey Peninsula, from $1.5 to $35 million; yet only 34 such properties have sold since beginning of year, from $1.5-$7.8 million. It's definitely a buyer's market in the higher price ranges. We did close $1.6 and $1.9 million properties last week, along with 13 others at $1 million and under.
North Bay- The Greenbrae office mentions that a flurry of new listings is looking to extend the Spring market well into Summer. Lots of activity in Central Marin in the $1M-1.1M price range. San Rafael tells us that currently there are 174 active homes & 58 condos on the market in San Rafael with 78 homes & 45 condos pending. In Novato there are 148 active homes and 58 condos which is lower than last year at this time. There are 113 homes and 48 condos pending. In Southern Marin the general feeling is that sales are picking up and buyers are getting more serious. Sebastopol states that Buyers are clamoring for low end inventory. 10+ offers are the norm under 300k. Lots of nosey neighbors at open houses have also been reported.
Peninsula- Things are definitely heating up as the Burlingame office hears more stories of multiple offers & see that the inventory is declining in most areas. Open house attendance is steady. In the Menlo Park area, a couple of higher end sales again which is encouraging. Higher end (over 3.5mil) is beginning to see some movement but higher end inventory levels give buyers a lot of power. Open houses were not as active, most likely due to the heat. Activity seems to be picking up. One Atherton listing was sold list price of $7,995,000. A couple of other high end sales last week both in Menlo & Atherton. For the Palo Alto offices the last seven to ten days has been very busy with multiple offers with prices exceeding upwards of 8-10% over list price on homes from $800k to $3M. I don't believe it's a trend, bit it is certainly very busy. We have had high-end sales & closings within ten days in Atherton at $7+M multiple offers @ $2M, multiple offers @ $3M. As many as five to 13 offers per property.
San Francisco-The Van Ness office tells us the market above 1.5 million continues at a remarkable pace - 8 for this week! For the Market St. office, lots of offers are being written this week, some have ratified, some are still being negotiated, & some were lost out on in multiple offers. Agents sense that the mood of the buyer out now is very positive & very motivated. A Previews property listed at 3.4 million was sold in the first 7 days on the market. Our Lombard office reports that solo offers this week dominated by multiple counter-offers, a number of all cash deals, and some quick deals right on the heels of a price reduction. Again, under $700k a hotter market. As for the Lakeside office, they have stated that the desired impact of the stimulus package seems to be happening. Homes under 600,000 are highly sought after by multiple parties while the higher end properties are still sitting on the market a bit longer & then negotiated down.
Santa Cruz County-The local market continues to plug along; Agents are busy writing offers, trying to get short sales accepted/approved, in general working harder than they ever have. It seems some of the uncertainty is going away and consumer confidence with real estate is on the rise. People are realizing that the window of opportunity is closing, with a lack of inventory, very competitive interest rates and great prices.
Silicon Valley-Our San Jose Almaden office reports that 11 of 13 sales were distressed this week. Currently Santa Clara Count is experiencing over 50% of its inventory pending. Of course it is all the lowest end of the marketplace. Blossom Valley is above 50%, Almaden has climbed to 30% from 12% in just two short months. One REO last received 25 offers and went 25% above asking price. San Jose Main reports a great week for sales and activity. Excellent open house traffic in all price ranges. Buyer motivation is heating up. Low to mid priced homes seem to be getting the most activity. The San Jose Willow Glen office reported we have slowed up a bit and it may be due to graduations and a holiday weekend. Though floor calls and open houses keep us quite busy.
South County-We have 187 active San Benito County single family listings. This week we had 15 closed single family transactions, 10 of which were REOs. We had 20 new active listings this week for Hollister. REO listings have picked up a bit this week. Open house activity is not very good probably due to heat this past weekend. Short sale activity is still strong. In Morgan Hill, the market has not changed from last week. Open houses are well attended, inventory of well priced (entry level) homes is decreasing while demand remains high. Agents are busy writing purchase contracts, but multiple offers are very common and prices are being bided upward. Homes that are selling beyond the asking price (due to multiple offers) are, however, facing appraisal issues.

As we head into this long three day weekend I'd like to wish everyone a very happy and safe Memorial Day weekend with family and friends. It's cold in the City and we're trying to find the sun, but hopefully many of you will enjoy BBQs, sunshine, maybe a little swimming and (hopefully) a home sale or two.

Until next week,

Make it a great one,

Rick

Rick Turley

President

Coldwell Banker Residential Brokerage San Francisco Bay Area

Short Sale Incentives from Obama

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Sun, 17 May 2009 11:56:15 -0500

I received an email today from CAR (California Association of Realtors) and in it was a news flash outlining the new Obama Short Sale Incentives and Uniform Process Program. This was desperately needed in my opinion and should help turn many short sales into real sales, saving home owners from foreclosure and hopefully streamlining the process at the bank.

Mark

Obama Administration Announces Financial Incentives and Uniform Process for Short Sales

The NATIONAL ASSOCIATION OF REALTORS® (NAR) today announced that the Obama Administration has added new incentives and uniform procedures for short sales under its new Foreclosure Alternatives Program (FAP), part of the administration's Making Home Affordable plan.

Loan servicers may consider short sales or deeds-in-lieu of foreclosure for borrowers who do not qualify to have their loans modified on a permanent basis under the Making Home Affordable Loan Modification Program.

•· Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the Home Affordable Modification program, but don't qualify for a modification or do not successfully complete the three-month trial period. Before proceeding with a foreclosure, servicers must determine if a short sale is appropriate.

•· Incentives include: $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure; $1,500 for borrowers/homeowners to help with relocation expenses; and up to $1,000 toward the cost of paying junior lien holders to release their liens (one dollar from the government for every $2 paid by the investors to the second lien holders).

•· The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use of the short sale option.

•· Servicers will independently establish both property value and minimum acceptable net return, in accordance with investor requirements. The price may be determined based on an appraisal or one or more broker price opinions (BPOs), issued no more than 120 days before the date of the short sale agreement.

•· In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to market and sell the property, or up to one year, depending on market conditions. Property must be listed with a licensed real estate professional with experience in the neighborhood. No foreclosure may take place during the marketing period (at least 90 days) specified in the Short Sale Agreement.

•· The Short Sale Agreement must specify the reasonable and customary real estate commissions and costs that may be deducted from the sales price. The servicer must agree not to negotiate a lower commission after an offer has been received.

•· Servicers may not charge fees to borrowers/homeowners for participating in the FAP.

•· The program is in effect through 2012.

•· Servicers have the option to require the borrower/homeowner to agree to deed the property to the servicer in exchange for a release from the debt if the property does not sell within the time allowed in the Short Sale Agreement (plus any extensions).

Recent Housing Stats Are Showing Encouraging Signs for Market

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Sun, 17 May 2009 11:39:28 -0500

This week I thought I'd share some positive stories that continue to permeate not only our local news but on a national level as well.

The National Association of Realtors^® said its Pending Home Sales Index, based on contracts signed in March, rose 3.2% as first-time buyers waded into the market to take advantage of favorable prices and mortgage rates.

A report from the U.S. Commerce Department showed construction spending rose 0.3% in March, the first increase in six months.

The pending home sales report added evidence that sales have reached a bottom. That's critical because once sales bottom, it's only a matter of time before you work off excess inventories. That's the key to stabilization in the financial system and the economy at large. We're closer to that than people thought just a few months ago.

-- Michael Darda, chief economist at MKM Partners in Greenwich, Conn., "Sales and Construction Data Lift Hopes for Housing," by Lucia Mutikani, Reuters, May 4, 2009.

On a national basis, the forces driving real estate right now are increasingly turning positive and encouraging.

• Home sales in major markets around the country have shown dramatic gains in the past month.

• In Florida, statewide sales jumped by 30% in March over year-earlier levels, and were up 33% over the previous month. Even condo sales were up by 25%.

• In California, statewide sales rose 64% in March compared with March 2008. Unsold inventory is now just five months -- that's down from 12 months the previous March.

• Median house prices may be bottoming out. The California Association of Realtors^® reports the median price of homes sold was up by 2.2% for the past month.”

-- "Real Estate Outlook: Sales Rising in Some Areas," by Kenneth R. Harney, Realty Times,
May 5, 2009.

Also interesting to note:

• The current price level of homes seems to be drawing more buyers into the market, according to Jim Gillespie, president and CEO of Coldwell Banker Real Estate. “We are seeing a lot of activity across the nation. Of course we're in the spring market, but we've seen more buyers in the market now than at this same time last year.”

• "Home prices are where they should be. Sellers are accepting the current reality and are pricing more realistically," said Robert Abbott, co-owner and VP of a northern New Jersey brokerage. "More people are not only 'kicking the tires' but actually buying right now. We are showing significant activity when it comes to sales. The number of days for a house on the market is going down."

-- "More Homes Get Multiple Offers; Downturn May be Nearing End," by Julie Schmit, USA Today, May 6, 2009.

Multiple bids have picked up in recent months in California and other states hit hard by foreclosures and steep price drops, real estate executives say. "If a house is in a good neighborhood, is maintained and is a good value, it'll get multiple offers. One in 10 homes now draw multiple offers, up from one in 30 last fall."

-- Julie Holt, owner of a title services company in Florida, "Is Now the Time for Some Home Buyers to Make a Deal?," by Mark Koba, CNBC, April 28, 2009.

And with that news in tow, let’s take a look at this week in real estate:

East Bay—Berkeley reports that buyers are stepping forward to make offers, while others continue to have scary perceptions which keep them from offering. Job security is the biggest worry. Sellers are reluctant to reduce prices. No one knows what Cuomo's new appraisal regulations will mean to the market. It ought to be a big convincer to sellers to keep their list prices reasonable. Banks continue to look for all cash buyers. Danville reports that inventory in San Ramon and Dublin is under two months. We need inventory! Fremont reports this past week seemed to be a bit slower, maybe because of Mother's Day last weekend. The open homes are busy with people who are interested in buying, they just need a little encouragement. Oakland reports interest rates have come down for jumbo loans, so we are picking up listings in the upper end and they are selling. The market is really picking up and we are up over last year. The past week we have a very large percentage of multiple offers, mostly two offers on each property, one had nine in a very low price point. Still seeing appraisal issues that are new based on changing guidelines. Walnut Creek reports the low end of the price range is selling with multiple offers, driving up prices. In the mid range, the well priced, nice looking properties are selling with numerous counters back and forth between buyers/sellers. Upper end is not moving.
Monterey County—It's a quick-moving market to the east of us, Salinas south to Greenfield, and also Seaside, in our area, where the prices on the REOs combined with the low interest rates are motivating first-time buyers and, increasingly, local investors. Market is still sluggish in areas more our marketplace, like Carmel and Pebble Beach, where we are seeing increasing numbers of properties coming on as short sales or likely to be short sales by the time a buyer steps forward with an offer.
North Bay—Petaluma reports inventory continues to be light and the majority of the Agents have multiple buyers hovering over a limited number of listings. Most of the properties under $300,000 are getting double digit multiple offers. Santa Rosa reports that its REO specialist says there may be some light at the end of the tunnel as assignments are starting to trickle in. We still have lots of buyers and few properties to show them. Sebastopol notes a lack of new inventory continues to be the challenge. San Rafael reports there is an increase in listing and sales activity in properties that are not distressed (REOs and short sales) in all price points. We listed two properties over a million and have offers in on two properties over $1.5 million in San Rafael and Novato. Greenbrae office says they are seeing multiple offers for well-priced, well-presented homes in Greenbrae, Larkspur, and Corte Madera. This is in sharp contrast to just a few months ago when fears of the country’s financial crisis seemed overwhelming. Things seem to be easing up now as Buyers with good credit and a job are finding it not so difficult to get a loan –and at record low interest rates! The Southern Marin offices report the first week of April saw increases across the board in our Southern Marin offices. We saw $8 million worth of new sales and close to $5 million of closed escrows, by far the most we have seen all year. Many reports of multiple offers and even the $2 to $3 million is picking up in So. Marin.
Peninsula—The Burlingame office reported that Mother’s Day didn't slow down the open homes that were held open. There were an average of 20-25 groups through in most reports. Buyers were asking when offers were being presented and we haven't heard that in awhile. The Half Moon Bay office reports seeing more listing Agents/sellers increasing the sale side commission to attract more showings. Good attendance at open houses. The Menlo Park El Camino office reports a great week—sales from $9.8 million to $185,000 and a lot of them! Everyone seems a bit more positive. The price base is rising; high end sellers are realizing that their prices are just too high for the current marketplace and finally are seeing the light. We had one sale listed at $3.4 mil that had turned down offers of $4 million a few months ago—same story across the board. Redwood City reports lots of activity on open houses even on Mother's Day; 40 to 50 groups at a new San Carlos listings. We're seeing multiple offers on the low end REOs-the $800,000 - $1m range is attracting more interest but first must be perceived as a great value. Woodside reports we are beginning to see offers being made on our higher end properties; not coming together just yet but we have hop. Two that are currently in play have come down from their high listing price about 35%
San Francisco—The Lakeside office reports that the entry level market is hot right now; anything under $600,000. The Lombard office reports that after a fast start to May, we had a slow week. Possibly due to Mother's Day? After a flurry of multiple offers, back this week to multiple counter-offers (up to five and six). Hard negotiations. A fall out and frayed nerves over slow loan processes. Time for listing Agent and sellers to be a little more patient and accommodating. The Noriega office reports in the affordable price range $400,000-600,000, buyers are definitely off the fence, but good inventory in the price range extremely low and multiple offers are very common. The Van Ness office reports continued increase in sales activity, and is seeing activity at all price points. This week the office reported 36 ratified offers - Wow!
Santa Cruz County—Steady as we go. We are cautiously optimistic about the market activity. Like other areas with a high REO number, that inventory has been drying up thus creating multiple offers on those properties. There remains an expectation that more are coming, we have yet to see any new bank owned properties to list. Buyers are realizing that time is of the essence in terms of purchasing and many are taking advantage of the tax credit for first time buyers. Along with the lowest interest rates ever, activity is steady in the lower end also. Financing, appraisals, appraisal reviews, longer loan times in general, are the norm and creating stress on most of the transactions. Managing the client expectations whether it is a buyer or seller (or the other agent) from beginning to end is crucial.
Silicon Valley—Our San Jose Almaden office reports all 10 sales this last week were distressed properties; mostly REOs. Many REO listings are receiving 10-25 offers. Banks are jamming the list prices down in an effort to stimulate activity. And it is working. Those properties are often selling at 20% or more above asking price! The San Jose Willow Glen office reports we are a lot busier. Buyers seem to be a lot more comfortable in taking the step into home buying. Open houses are very busy with a lot of traffic as well. San Jose Main reports listings are slowing and sales increasing. Most multiple offer sales are occurring in the lower price range. Excellent weekend traffic reported at open houses both Saturday and Sunday. Saratoga reports our upper end continues to lag. On a positive note our sales under $1,500,000 were very strong last week. I'm hopeful this is a sign that buyers are comfortable that we've hit the bottom of the market.
South County—The Gilroy office reports open house activity was slow due to Mother's day weekend and the wonderful weather. Agents are now challenged with the lack of inventory. Most new listings are receiving multiple offers and selling over list price. Bank owned properties are still the majority of the market sales. The Hollister office reports active listings are down from last week. Sale pendings are up. The average DOM is 80. The average sales price is $300,000 up from last month. REO inventory is decreasing. Short sale listings are increasing. The Morgan Hill office reports that in South County an interesting phenomenon is occurring. The demand for "entry level" (well priced homes under $300,000) is far exceeding supply. This past month Agents have experienced multiple offers of these types of properties. In most cases these listings are selling over asking price with multiple offers. This is a very encouraging sign that, perhaps, prices are stabilizing.

In short, it seems buyers are finally starting to get the sense that now is a good time to buy and that if they wait, they may loose out on one of the best times in California history to purchase real estate. Now, if we could just get more listings. Do we sound like we are never satisfied? Oh well, what a difference a year makes! It’s an exciting time so let’s make good use of it. I am currently wrapping up meetings in Washington DC as an NAR Director, so next week I’ll write on some of the important legislation being proposed to complete the necessary steps for our housing recovery.

Until next week,

Make it great one,

Rick

Rick Turley

President

Coldwell Banker Residential Brokerage San Francisco Bay Area

Why didn't I buy more real estate in 2009?

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Mon, 11 May 2009 11:53:32 -0500

Stress Test Reveals More Work to Be Done By Banks- While Entry Level Local Real Estate Market Heats Up!

This week the results of the long-awaited Stress Test on US banks were released. What the government hoped to accomplish through this Stress Test was to determine how much capital the banking sector currently has, and what level they deem appropriate to withstand the recession. The result was that 10 of the nation's 19 largest banks will need to raise a total of $74.6 billion in capital. The Stress Test revealed that banks like Goldman Sachs and J.P. Morgan seemed to be better positioned than Citigroup and Bank of America.

At this point, according to Kiplinger, "The stronger banks will actively do what they can to return any money borrowed from the government to get out from under restrictions on dividends and executive compensation. Their ability to sell common stock to the public is far better than their weaker counterparts, who may have to privately sell stock to investors or raise capital with so-called mandatory convertible preferred shares."

According to industry analysts, it seems that until the banks get back on their feet, credit will continue to be tight. That leaves the Federal Reserve responsible for filling in the gaps with its own programs aimed at jump-starting lending.

On a brighter note, however, the real estate sector of our economy continues to show some positive signs. USA Today reported earlier this week that "More homes for sale are attracting multiple offers as buyers pursue lower-price homes and banks low-ball asking prices to attract competing bids on foreclosures." It's exactly what we've seen locally, the entry level home buyer market is fueling this recovery. We forecasted this, and now that multiple offers are the norm in the majority of our entry level markets, some frustrated buyers are scratching their heads and wondering what happened to the buyer's market. We warned that things could turn on a dime, and it seems in many starter home markets, prices are already on the rise.

Here are some links to some interesting news stories from the week:

USA Today: More homes get multiple offers; downturn may be nearing end (http://www.usatoday.com/money/economy/housing/2009-05-05-foreclosure-home-sales_N.htm?loc=interstitialskip)
Business Week: Want to Sell Your Home? Lower Your Price (http://www.businessweek.com/lifestyle/content/may2009/bw2009055_075566.htm?chan=top+news_top+news+index+-+temp_news+%2B+analysis)
RISMedia: Relocation.com Survey Shows Consumers Moving Further Due to Economy (http://rismedia.com/2009-05-05/relocationcom-survey-shows-consumers-moving-further-due-to-economy/) - This is a good reminder to consumers on why they should choose an Agent who is affiliated with a large, global real estate company that has the breadth and influence to reach the largest pool of buyers.
NYTimes: Where Home Prices Crashed Early, Signs of a Recovery (http://www.nytimes.com/2009/05/05/business/economy/05turnaround.html?_r=2&hp)
Realty Times: Real Estate Outlook: Sales Rising in Some Areas (http://realtytimes.com/rtpages/20090505_realestateoutlook.htm)

Now, let's take a look at this week in San Fransisco area real estate:

East Bay-Castro Valley reports short sales continue to dominate the market. Listing inventory is so limited that properties are going pending as soon as they hit the market. One property went pending one day after listing. Many of our Agents are frustrated because they set appointments with buyers to view properties, but the properties are already in escrow. REOs are starting to reappear in the market. Fremont reports it seems that the market is starting to pick up and buyers are feeling more confident in the economy-they are starting to move forward, not just looking! Livermore notes the major part of our market are properties priced below $500,000. We continue to see multiple offers on almost all properties in this price range with the majority of the sales being REOs and short sales. Something noteworthy is that they had two sales in the office this past week in $800,000 range which has not happened in several months.
Monterey County-The market continues on with slowness in the higher prices ranges and multiple offers on the REOs in Seaside, Marina, Las Palmas in Salinas and South County, where you can now buy a 5-bedroom, 3-bath home for around $265,000. Seaside is the "hot" spot and has had 86 closings this year, with only 43 active properties at this point (10 of those in escrow), while Pebble Beach has had only 18 closings this year, with 106 active listings and only one of those pending.
North Bay-Greenbrae reports that Spring seems to have sprung in the million price range. We are seeing increased activity in all Marin cities. San Rafael notes that there is still a huge turn out of buyers at open houses in San Rafael and Novato at the lower end of the market. Southern Marin reports a great week as well. Agents were involved in several multiple offer presentations and won! The market is definitely picking up in Southern Marin. Santa Rosa reports that they are starting to really feel the effects of the shortage of REO inventory. Sales of non distressed properties have picked up. Short sale escrows have increased but no apparent increase in the percentage of short sales closing. The Sebastopol office reports multiple offers in all price ranges. A dearth of new REO properties is pushing short sale offers. We're seeing that 10-15 offers are not uncommon.
Peninsula-The Burlingame office reports that the rainy weekend didn't dampen the open house attendance. Burlingame, Hillsborough and San Mateo opens were well attended. The Agents are reporting that many buyers are feeling that we are at the bottom and now is the time to buy. There is such a need for quality inventory in the $800,000 range as this is where so many of our clients are looking. Menlo Park Santa Cruz Avenue reports that open houses were packed over the weekend in all price ranges. There seems to be a ground swell of activity with Agents writing offers that will hopefully translate to transactions next week. Palo Alto reports some optimism and some movement in the area. As inventory builds, buyers have more selections. San Mateo had a good analogy about the market: Buyers seem to be "on your mark, get set...there just isn't enough ‘go" yet but open houses are well attended." It's the indecision on the part of buyers that we're still seeing in this market.
San Francisco-The Lombard office is reporting good traffic and sales activity in the $500,000-750,000 price range. They saw more multiple offers, winning and losing, this week than any time in the last year. But buyers above $1.5 million continue their reluctance to make a move. This will all come in due time. The Market Street office reports that this is the third week in a row that a property was brought on the market and sold with multiple offers in less than one week. The list price was $749,000. The other property that was in multiples had been on the market for 90 days when two offers came in on the same day. More offers are being written and open houses are well attended. The Noriega office reports two out of the three multiples were REOs, the one that was not is an Outer Sunset home listed for $539,000, original fixer, received 11 offers, 8 out of 11 were over asking. We're expecting a flood of REO listings coming, starting mid-late June this year. Their BPO activities were way down in Feb/March, but it really picked up in April. If you have a "value minded" buyer on the sideline, get them ready, get them pre-approved and get your Agents ready to sell these REOs. The "sale" is a limited time offer only.
Santa Cruz County-With some positive news abounding in the news and some positive indicators in the market, it seems consumer confidence is beginning to come back (we are very cautiously optimistic). We are expecting another wave of REOs to come through within the next couple of months. The inventory in South County has for the most part dried up and there are multiple (multiple) offers on what is left of the REO properties. We are seeing prices increase in South County from three months ago. Overall throughout Santa Cruz County, inventory levels are way down and we have experienced multiple offers on many properties below $800,000.
Silicon Valley-San Jose Almaden reports distressed sales continue to dominate our market. 11 or the 13 sales are distressed. Almaden which had been slow is beginning to pick up nicely. Three properties sold in Almaden within two weeks of being listed last week from this office. San Jose Main reports activity and sales continue to be brisk in the price range of $550,000 down. Many multiple offers on $250,000 to $550,000 homes and condos. Sales are up but listings continue to lag. Saratoga notes we're still experiencing a slow upper end. We're seeing some multiple offers on REOs and well priced lower end properties.
South County-The Hollister office is reporting that last week in San Benito County we had 198 active single family listings and 140 pending transactions. This week we have 183 active single family listings and 200 pending transactions. The month of April reports 52 closed single family transactions for San Benito County. Multiple offers are still being seen on most REO properties. Last month the Morgan Hill office had incredible sales activity. Agents were very busy writing offers and getting them accepted. Response time for short sale and REO offers is much more acceptable. Interest rates continue to be attractive. Our goal is to keep up the momentum.

What do we do with this information? The responsible thing is to make sure everyone hears it. It's one thing for me to talk about a recovering market but it's another when even the most pessimistic analysts are doing the same. The stories above share the real story. All of our offices are reporting similar stories and as I visit our offices and talk with our Agents, I'm hearing the same scenario: the market is heating up. The window of opportunity has been open and it has been inviting buyers in for months. With the speed that buyers are responding today, it won't be open long. I can assure you there will be people years from now who will say "Why didn't I buy more real estate in 2009?"

First Time Home Buyers Are Fueling the Come Back

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Sun, 26 Apr 2009 14:31:57 -0500

I just received this interesting Market Report from Rick Turley, our area president about the market and thought I would share it with all of you. As history seems to show, the west coast usually leads into market down turns and then leads us out of them. If this holds true, these are pretty good signs!

Mark

It's finally happening. In my August 2008 Reality Check message I discussed our market's need for the revival of the first-time home buyer. Because as we know, first time home buyers are a critical force that will help jump start our market rebound, creating that important domino effect that will ultimately benefit all price points. When first time home buyers purchase entry level homes, that allows the entry-level homeowners to sell and move-up to a mid-level, move-up market. By purchasing those homes, the move-up market is able to sell and ultimately purchase homes in the luxury arena. It's a much-needed domino effect that will have significance in our market's rebound. The numbers released over the last two weeks are showing that the process has already begun.

First, let's look at NAR's release this week of its March existing home sales. Now of course some media did use the nationwide month-over-month decrease in sales as an opportunity to take a negative spin but there were a lot of positives in this news. First, nationally, prices rose from February to March by 4.2 percent which is much higher than the typical 1.8 percent seasonal increase between those two months.

Second, housing inventory at the end of March fell 1.6 percent to 3.74 million existing homes available for sale, representing a 9.8 month supply at the current sales pace. This is important to note because March is frequently a strong listing month and more often than not, inventory grows in March.

In the West, existing home sales declined 4.2 percent to an annual rate of 1.13 million in March; however, of great significance is the fact that this number is 18.9 percent higher than last year at this time.

The fact is, the share of lower priced home sales have trended up, indicating a return of many first-time buyers. Sales in the upper price ranges remain stalled, but the last two weeks have produced more $1M+ pending sales than we've seen in a while as Buyers are taking advantage of two things in the upper end. One is the luxury of choice. Buyers can actually shop and compare. When they find what they want at an attractive list price- they are making offers. The second fact is that although Jumbo loans still have practically no secondary market (which increases competition and lowers interest rates), the Jumbo rate appears to be currently within one percent of the conforming; and buyers are seeing that it's still a very attractive rate. For example, Princeton Capital's rate sheet on April 20 showed a 5/1 Conforming at 4.625 -I point, and the 5/1 Jumbo at 5.3% - 1 point. FICO scores and down payment are of course key, but the market is beginning to get used to the new requirements.

Another interesting note, the Mortgage Bankers Association this week released its Weekly Mortgage Applications Survey for the week ending April 17. The index showed an increase of 5.3 percent from the previous week and that was a 76.9 percent increase compared with the same week a year ago. Yes, a 76.9% increase in mortgage applications, that's not a typo.

While there is some criticism of certain steps our administration has taken to revive our economy, it seems some of the early work like the first time home buyer tax credit is effective. Earlier this week Inman News reported that the preliminary numbers from the IRS suggest 1.4 million taxpayers will claim the federal first-time home buyer tax credit on their 2008 tax returns, meaning the program is likely to meet or exceed the 2 million target set by lawmakers before it ends November 30, 2009.

Finally and I think this is probably most notable, the Wall Street Journal reported this week that prices have fallen back into line with what the typical household can afford to pay in most of the U.S. The report showed that home prices are dubbed "fairly" valued in 202 of the 330 markets studied. That means the average price level is within a band 14% above or below the historical norm. Twenty-one markets are "overvalued" or between 14% and 34% above the norm. And 106 markets are considered "undervalued" or more than 14% below the norm. Take a look at this graph which showcases where we were in the early part of the decade as compared to today:

I know it's difficult to view the drop in property value a positive thing. But the fact is that though the ride was nice in the big real estate boom of the early 2000s, we couldn't sustain those types of record appreciation levels without eliminating certain consumer niches, including first time home buyers. Now that levels are back within range, the first time home buyers are once again able to reenter the market which is why we are seeing such a strong surge in sales in that level.

Locally, we had further news this week that symbolized the first-time buyer pick-up. Rather than summarize them, I'll simply share the links for your own reading:

It's just a matter of time before we weed through the remaining banked owned inventory and we should begin to see prices stabilize. Once we see that, the remaining areas of the market should begin to see an upswing, too.

Next week will bring some more interesting news. Check out this article that ran Monday in The Wall Street Journal:

http://www.washingtonpost.com/wp-dyn/content/article/2009/04/19/AR2009041901875.html.

Once we see the results of new home sales (existing home sales were already reported), we should have a better indicator of where we are. I'll leave you with this excerpt from the The Wall Street Journal's story:

"Whatever the March numbers say, there are good reasons to think that home sales will improve as the spring selling season gets underway. Anecdotal reports suggest that low mortgage rates and an $8,000 first-time home-buyer tax credit are coaxing buyers back into the market. And while foreclosures are set to rise as banks begin to move on delinquent homeowners, that actually could boost home sales as banks auction homes for whatever the market will bear."

The market is without a doubt changing and we may finally be seeing the end of the great housing challenge of the 2000's. I'm sure we are all up for that.

Until next week-

Have a great one,

Rick

Rick Turley

President Coldwell Banker Residential Brokerage San Francisco Bay Area

First Time Home Buyer Tax Credit Info & Resources

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Mon, 06 Apr 2009 11:17:17 -0500

NAR has put together a couple of helpful resources for individuals looking for insight into how specifically the "First Time Home Buyer Tax Credit" really works. I ran across this info and thought many of you could benefit from it.

Click here for a list of commonly asked questions relating to the credit.

The IRS First Time Homebuyer Tax Credit Form can be downloaded here.

Hope this helps you first time buyers out there.

Mark

My Magic 8 Ball Says, "Outlook Is Good!"

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Sat, 04 Apr 2009 00:26:58 -0500

Below is this weeks Market Watch for all of the Coldwell Banker offices in Northern California by Greg Marcres, the Executive VP for the Western Region with Coldwell Banker NRT. It looks like the corner might finally be in sight and we might even be starting to turn it! Speaking from personal experience, our market here on the Monterey Peninsula has definitely picked up a little steam. I have written two offers in the last 24 hours and might be writing a third one tomorrow! Our office in Pacific Grove is busy and our listings, especially in Pebble Beach have seen an increase in showings! Every "active" agent I have spoken to is feeling the same surge of activity with buyers.

Could this be the bottom? Read on!

Mark Bruno

I'm Invigorated!

Okay, I know that headline seems a little exaggerated and maybe even a little far-fetched, but honestly I am. I don't know if it is a combination of the sun, the clean Spring air and the excitement that seems to be brewing in our offices, but I can feel that change is abuzz in the real estate market and for the first time in a long time, I'm truly invigorated!

This week was yet another week of milestones. Several weeks ago I questioned, are all of these positive indicators the start of a trend or are they just that, positive indicators that will have a short shelf life. Well, after at least four weeks of some strong, positive gains, I truly am invigorated.

This week, NAR released its Pending Home Sales Index, a forward-looking indicator based on contracts signed in February, reporting that pending home sales rose 2.1 percent to 82.1 from a reading of 80.4 in January. Pending home sales have a way to go for there to be a meaningful increase, but recent increases in shopping activity are hopeful indicators that we'll see additional sales gains.

NAR's Housing Affordability Index also rose 0.9 percentage points to a record high of 173.5 in February from an upwardly revised index of 172.6 in January, and is 36.3 percentage points higher than a year ago. This broad measure of housing affordability using consistent values and assumptions over time, shows that the relationship between home prices, mortgage interest rates and family income is the most favorable since tracking began in 1970. 1970!!!!

Also interesting, Inman News released a survey this week noting that of the 225 readers who responded to an online survey from March 23 to April 1, 48.9 percent said housing markets in their area were improving, 27.1 percent said they were stabilizing and just 12.9 percent characterized them as worsening.

That, along with the indicators I've referenced over the last several weeks including last week's jump in mortgage applications, the historic drop in interest rates and the surge in new housing starts, we truly are seeing some very positive and indicative signs of recovery. I truly believe that buyers are seeing inventory move and that gets them moving.

It seems some of Obama's various recovery efforts are starting to have some effect on the market. The billions to slow foreclosures and goose bank lending, plus the tax credit, are getting buyers to move which is a positive sign.

Now, of course, we'll have to keep our eye on it and watch as the market continues to progress through our traditionally busy Spring selling season, but thus far the signs are positive and my magic eight balls says "Outlook is Good."

With that good news in tow, let's take a look at this week in real estate:

East Bay-Our Berkeley office reports we are busy writing offers and selling listings. We had eight offers on an REO priced low and won out over four other offers on a property listed at $1.25 million. There are still some fence sitters and some fall out, but open houses are busy, rates are low and the media is even reporting some good real estate news. Castro Valley reports that they are starving for fresh inventory. We have plenty of buyers with new ones coming to the surface each day. Prices remain stable throughout, although we are seeing some great deals in the mid and upper range markets. The majority of our business is short sale at this time and we are waiting for long periods for lender approval. This is slowing all aspects of our process down. Fremont reports that sales are good and this may be a reflection of the reduction available in REO properties. REO sales have become more competitive, buyers are trying to take advantage of these great deals. Livermore reports there were 114 pending sales in Livermore in March 2009 and 109 of the pending sales were listed at $499, 950 or less. Oakland reports a very busy week but most of the sales were in the lower price ranges and the REO business is busy. Our number of open houses are increasing.
Monterey County-Mortgage rates are down. REOs coming on the market have slowed. Though there is still good inventory in most areas and it appears that prospective buyers are getting more serious about it being a good time to buy. We're seeing better open house attendance and more offers being written.
Santa Cruz County-There is definitely a little "uptick" in the market with more showings, seemingly more offers and generally the activity that comes in Spring. Pendings continue to be strong in South County (Watsonville) with over half in that area. Inventory levels have dropped in the past five months. Median price dropped to $386,000 in the county with South County providing a significant influence on this drop.
Silicon Valley-The Cupertino De Anza office reports "I hope it's not just a blip in the market, but we had a good week." Agents are hearing buyers say that it's a good time to buy, rather than that they should wait and see how low things will go. Cupertino Stevens Creek concurs noting that listings have decreased but sale pendings have increased. Los Gatos is also on board with the good news bug noting, "The market is hot right now. Lots of multiple offers and we are even having the low range of high-end moving. Our San Jose Willow Glen office reports that sales picked up last week. Worthy to note that all but one were distressed properties. Multiple offers on one traditional sale in Almaden. The first buyer tried to low ball it after two weeks on and then walked away from it. A week later, the buyer came back with a slightly higher price that the seller countered and then another offer came in for a close to asking price. The second offer got the house. The first buyer waited too long and is now sorry they missed it.
South County-South County continues to provide buyers with a myriad of choices-entry level, moderately priced homes as well as high-end inventory. Each category, however, is credibly priced and perceived by most to be an excellent value. This is reflected by increased attendance at open houses, office "up calls" and "walk ins." Morgan Hill's sales numbers have increased dramatically-though the average sales prices continues to decline.

As you can see, the market is heating up. Consumer confidence is finally on the rise and buyers are edging off the fence. For those who are still cautious, please consider all of the positive signs that are knocking at your front door. From the first time home buyer credit to the historically low interest rates to the increases in conforming loan limits to the generous amount of inventory to the motivated sellers to the...honestly, the list goes on. Opportunity is knocking and it is time for buyers to recognize this and jump in.

Until next week,

Greg Macres

Executive VP Western Region, Coldwell Banker NRT

From A Slow Crawl…To a Brisk Walk

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Fri, 27 Mar 2009 14:47:09 -0500

I heard someone earlier this week say that the housing market has gone from a slow crawl to a brisk walk. I think that is the perfect metaphor to explain the recent changes in the real estate market. The market is coming back. It's not roaring, but it's coming back.

This week, according to Reuters.com, U.S. mortgage applications jumped as record low interest rates spurred a surge in demand for home refinancing loans. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 32.2 percent to 1,159.4 for the week ended March 20. Refinancing accounted for 78.5 percent of all applications.

Furthermore, interest rates on mortgages fell after the Federal Reserve last week said it would buy Treasury securities for the first time in more than four decades as well as more than double its planned purchases of mortgage-related securities. Reuters.com reported that "Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.63 percent, down 0.26 percentage point from the previous week, reaching a record low....Interest rates were well below year-ago levels of 5.74 percent."

Meanwhile, according to Realty Times, housing starts took a surprise jump of 22 percent in February over January's depressed levels. Most of the increase was attributable to apartments and condominiums, but single family starts were up by one percentage point, and new home permits were up by 11 percent, after months of sharp declines.

Existing home sales are also seeing some good trends. NAR reported this week that sales activity for single family, townhomes, condominiums and co-ops rose 5.1 percent to a seasonally adjusted annual rate of 4.72 million units in February from a pace of 4.49 million units in January.

The West is leading much of the nation's recovery, with California leading the charge. Our median listing price is beginning to rise for the first time in three years. Existing home sales in the West increased 2.6 percent to an annual rate of 1.2 million in February and remain 30.4 percent higher than a year ago.

Last week I recommended that you watch Coldwell Banker president and CEO, Jim Gillespie on CNBC's "Roadmap to Rebound" which focused on the state of the housing market. If you missed it, Gillespie stated that "the government could do a lot more than they are already doing in order to get the real estate market moving again." Congressmen and economists continually say that in order to get the economy going, we need to first get real estate going. Gillespie believes that two key changes are needed in order to get the economy moving, and the first item that needs to be addressed is to set a fixed-rate mortgage. "Lowering the interest rate to 4% to 4.5% for 12 months is one way to get the inventory moving." Along with setting a fixed-rate mortgage, increasing the tax credit to $15,000 and including all buyers of primary residences will help move buyers along and get the market to shift.

Gillespie also stated that the demand side needs to be looked at closely, because once we start to burn off the inventory that we currently have, prices will begin to stabilize and go up again, which will help those in distressed situations. "Fifty-five percent of loan modifications have failed after six months because jobs are not being created and homeowners are losing the jobs they have," says Gillespie. "In order to create jobs, we need to create demand, both of which will get the housing market and economy moving."

I for one appreciate seeing our leadership team speaking out on our behalf, serving as the visionaries for our industry. It's enlightening and certainly makes me proud.

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

East Bay-Berkeley reports we are busy selling every day. There appears to be more optimism amongst the Agents, but still some trepidation from buyers. Eight of our most recent sales had 2-5 offers, though, so buyers are beginning to buy. Buyers are being a little less demanding if they are in contract on a house they really want. Still tough to get sellers to price right or lower a list price. Danville notes that inventory and new pending sales have remained flat the past couple of weeks. The high-end in Blackhawk and Alamo is very slow. On the other hand, a condo in San Ramon priced at $200,000 got 17 offers. Fremont reports that listings are starting to pick up. Sales are somewhat slower than last week, but still, they are selling. People are looking for a great deal! They continue to watch and wait. Because of the moratorium, the REOs are still slow at this time. Oakland reports that our sales inventory is increasing because deals are taking longer to close. The prime issues are short sale approval, REO approval and now appraisals are starting to ask for conditions that were ignored in the past as well as numbers are coming in below the sales price. New sales for the month are coming in slower than they did in February. Orinda reports steady market in the Lamorinda area. Lots of new listings, not so many sales, but we are hanging in there and keeping our eyes on the prize! The market will pick up soon; we have faith and are staying very positive and supporting one another.
Monterey County-Though last week was a rather slow one for new escrows, activity at open houses and writing offers seem to be picking up. Also over the past three weeks, we've had price reductions on about 40 listings as sellers become more resigned to the current buyer's market.
North Bay-Greenbrae reports that open houses were well attended this weekend. Despite more homes going into contract, negotiations are tough and more complex. Short sales are creating some new issues for Agents as they try to work with the banks to make deals happen and we're starting to see more of them in the high-end of the market. Well presented homes in the $1 million range in Corte Madera, Greenbrae and San Anselmo seem to be gaining interest. Three of our Greenbrae listings just over $1 million experienced significant price reductions and went into contract. A Fairfax listing hit the price reduction point and garnered four offers-with the victorious offer from our office! Southern Marin notes that we are seeing a number of new listings coming on and sales are starting to trickle in. There seems to be more consumer confidence that is at least getting buyers to be a bit more serious and now they are even writing up some offers. The $2-3 million price range is still extremely sluggish. Petaluma reports that open houses are generating double digit attendees with one property on the west side having 40 groups. We are still seeing multiple offers and Agents are picking up buyers. Floor time has been productive with unattached buyers calling in on properties.
Peninsula-The Half Moon Bay office reports the coast is slow, especially over the $1 million price point. Sales activity has increased with the REOs and short sales. The Menlo Park El Camino office reports a sterling week in sales-all over the map sales. From $800,000 to $5.9 million and multiple offers to boot. We are hoping this is not a blip on the screen but as the song says, "The start of something big." Open houses were buzzing many turn into a roar! The Menlo Park Santa Cruz Avenue office concurs noting there was a jolt of life in our market last week. Energy seems to be building. We saw sales in the $230,000 to $5.9 million. Good interest rates and well priced inventory seems to be the ticket. One REO listing in San Mateo had 10 offers. Palo Alto notes the luxury market is extremely slow but activity between $1 million and $2 million has picked up. If well priced, properties will sell and some times with multiple offers-although not typically over list price. Inventory is building. Woodside reports sales all over the map-from $500,000 to $3.5 million. Sales over $3 million are running 15-25% off their pre September prices.
San Francisco-Our Lombard office reports good traffic but only a trickling in of transactions. Fallouts returned this week, one each for cold feet, financing and a short sale appraisal. REOs yielding multiple offers in 1-2 days. Private sellers could learn some pricing lessons from Asset Managers. Our Market Street office reports a single-family with unit in the Eureka Valley-Dolores Heights are garnered three offers in only 13 days at a list price of $1.695 million. A 4-unit building on the market for six days received five offers. It was listed for $1.050 million and was close to USF. There is a lot of optimism at open houses this weekend with buyers getting back into the market due to low rates.
Santa Cruz County-In the past five months the overall inventory level in the county has dropped by about 30% and the number of pendings have gone up about 10% overall. There seems to be an uptick in activity this week with some positive news from the media and the stock market. Open houses have been very well attended in most areas and new listings are attracting a lot of attention from buyers.
Silicon Valley-Our Cupertino De Anza office reports that things are picking up and nearby Cupertino Stevens Creek concurs noting that we're seeing increased open house activity. Los Gatos notes that more buyers are coming into the market, with more confidence. Our San Jose Almaden office reports some interesting trends. The days of inventory in Almaden is just a little less than three years. High end properties are not moving. Blossom Valley and Santa Teresa however are above 40% pending. 25% of that inventory is traditional sellers while the rest are distressed sales. Almaden has about 15% pending. Cambrian seems to be the healthiest with 28% pending and fewer distressed properties. Prices have held better there, too. I would say that Almaden has dropped nearly 25% in the last year. Blossom Valley around 30% and Cambrian closer to 20%. Our San Jose Main office notes that buyer interest continues to be brisk. Sales of homes in the $250K-600K range are on the rise. Weekend open house traffic was excellent in all price ranges. Lower interest rates are helping to influence sales.
South County-Our Gilroy office notes that we had 20 multiple offer situations. Agents are suddenly experiencing a similar situation as they did in the peak of the market: low inventory and not being able to get buyers a home due to multiple offers. Hollister notes that REO inventory decreased this week. Short sale listings increased.

After a week of positive indicators, my best advice is for buyers to get out there. There are some fantastic deals out there right now and as more people begin to realize it, competition will come back and begin to drive activity. You know what they say about the early bird!

Until next time,

Make it a great one,

Greg Macres

Executive VP Western Region Coldwell Banker, NRT

Monterey County Market Flash Report for February, 2009

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Fri, 20 Mar 2009 20:43:35 -0500

Home Sales Continue to Rise in February

First of all, thank you to those of you who have referred your friends and family to us for their real estate needs here on the Monterey Peninsula! We are extremely lucky to have so many great clients who refer us business all year! You are truly the lifeblood of our business! We now have the ability to find our clients top performing realtors all over the country, so if you or someone you know is looking to buy or sell real estate regardless of where they are or where they are going, we can help them find a great realtor! Just give one of us a call or send us an email.

As you will read in a moment, the market is very interesting right now and both Lynda and I have been working extremely hard again in 2009. Lynda has commented that in her 33 years in the real estate business, she has never been in a market quite like this one! It is very demanding and now more than ever you need expert representation to help you navigate through these difficult economic times with what is probably your single largest asset.

Lets talk about what is going on here.

Monterey County is really a story of three pricepoints.  There are the high end properties, over $4,000,000, the lower end, say under $600,000, and everything in the middle.

The high end continues to move at a somewhat less than normal pace as buyers and sellers are still having a difficult time "getting together" on price. But it does continue to move. There were just 4 sales over $4M in January and February combined, all in Carmel or Pebble Beach and there are 2 properties currently pending sale of the 74 listed in Monterey County in this price range. This isn't bad for this time of year, but it isn't great either.

The middle is a wide range of prices from $600,000 all the way up to $4,000,000 and normally would represent several different market segments. However, this entire range is currently suffering from the same set of issues which is a lack of loan programs to service this buyer segment. As such, the sales are pretty dismal. There are 711 active listings in this price range for the county and only 40 properties pending sale! For the months of January and February combined there were only 40 sales. They broke down as follows:

$4M-$3M - 4 sales (2 in Carmel, 1 in Pacific Grove and 1 in Pebble Beach)
$3M-$2M - 4 sales (all in Carmel)
$2M-$1M - 7 sales (3 in Carmel, 2 in Carmel Valley, 2 on Monterey/Salinas Hwy)
$1M-$900k - 3 sales (2 in Pacific Grove, 1 in Pebble Beach)
$900k-$800k - 4 sales (2 in PG, 1 in Carmel and 1 in Carmel Valley)
$800k-$700k - 7 sales - (2 in Carmel, 2 in No. Mtry Co., 1 in CV, 1 in Monterey, 1 in Seaside)
$700k-$600k - 9 sales - (3 in M/S Hwy, 2 in Carmel, 2 in Seaside, 1 in Carmel Valley,1 in PG)

As you can see, this is not a lot of sales activity for a two month period! However, the feds have just raised the conforming loan limit to $729,000, so this should help properties in the lower half of this price range to start to move again! Also, if you are looking in this price range and are prequalified or are paying cash, this is a great time to purchase! You are in the driver's seat!

The overwhelming majority of the sales activity is in the lower price ranges, under $600k. There are 2,038 listings in this price range and 574 of those are pending sale! This means there is less than 4 month of inventory and the market is very competitive for buyers with multiple offers on most of the properties that are selling. In January and February there were 338 homes that sold with exactly half of them being under $200,000!.  The shear number of properties selling in this lower price range combined wit the lack in high end sales is the driving force behind the Monterey County average price and median price steep decline.

As you can see it is a great time for first time buyers to finally be able to purchase a home! Programs are great, interest rates are at historical lows...Many who thought they would never be able to buy a home here are able to purchase one right now! Both Lynda and I have been working with a lot of first time buyers who can now afford to own a piece of real estate here on the Peninsula!

It is also a great time to purchase investment property here. For the first time in longer than most can remember, there are investment properties that pencil out and either break even or even make a couple of bucks! Give us a call to discuss opportunities.

Here is the Monterey county statistics report for February.

Sales of single-family, re-sale homes were strong in February, rising 158.6% year-over-year. This is the eleventh month in a row home sales have been higher than the year before.

Sales of bank-owned property made up the majority of home sales in Monterey County in February.

Sales are concentrated in the lower-priced cities such as East Salinas, where year-over-year sales were up 1,766%, North Salinas, where sales were up 414%, and South County, where sales were up 357%.

These sales are pushing statistical prices down. The median price for single-family, re-sale homes fell 6.5% from January, and was off 53.8% year-over-year.

The average price for homes rose 18.1% compared to January, but was down 60.9% year-over-year.

Inventory continues to fall, dropping 31.8% compared to last February.

The sales price to list price ratio for homes was flat at 96.9%.

Condo sales were up 35% from January, and were up 80% year-over-year.

The median price for condos rose 17.6% month-over-month, but was off 81.1% compared to last February. Don't put too much weight into the condo numbers as there were only nineteen sales last month.

The real estate market is very hard to generalize. It is a market made up of many micro markets. For detailed history of a particular cities statistics, visit our website's Monterey County RE Stats page. For complete information on a particular neighborhood or property, give us a call.

I hope this was informative and that you enjoy receiving these monthly updates. If you know of anyone who could benefit from this information or who would just be interested in reading it, please feel free to forward it on or send me their name and email address and I can add them to our list of recipients.

Take care,

Mark

Oh by the way, if you or anyone you know is interested in buying or selling a home, we are never too busy for any of your referrals!

Monterey, CA Home for sale - 557 Robinson Street - $499,500

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Tue, 03 Mar 2009 21:04:45 -0600

Minimize your carbon footprint!

$499,500

557 Robinson Street, Monterey CA

Features:

2 bedrooms, 1 bath
Recently remodeled inside and out
2 blocks from Del Monte Beach and the Wharf
Three blocks to downtown Monterey
Off Street Parking
www.557Robinson.com

Remarks:
Just around the corner from Dennis the Menace Park you’ll discover this 2 bedroom, 1 bath, very low maintenance cottage with upgraded bathroom and kitchen, tiled floors, newer counter tops, carpet and windows. The southern exposure fills the living room with warm light. Easy up-keep grounds; entire outside area covered with pavers. Fenced back yard for the dog. Mudroom/bicycle storage area. Get a head start on summer and plant your potted herb and tomato garden now. No more need for that second car because everything is within walking distance to all that Monterey has to offer, including desirable Del Monte Beach, farmers’ market and Trader Joe’s.

Monterey Peninsula Home Team
Lynda Nichols & Mark Bruno

831.626.2276 Lynda

831.626.2277 Mark

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Coldwell Banker Del Monte Realty

501 Lighthouse Avenue
Pacific Grove, CA 93950

831.626.2226

Monterey, California Contemporary Home and Estate for Sale - Sundance Lane - $5,395,000

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Tue, 03 Mar 2009 20:44:29 -0600

The Vantage

$5,395,000

12795 Sundance Lane, Corral De Tierra CA

Features:

6 bedrooms, 4.5 baths
Beautifully designed California Contemporary Home
Completely remodeled in 2006
Exquisite indoor and outdoor living space
Private 6 acre lot with fruit trees, raised bed gardens and mature landscaping
Solar heated pool with full outdoor kitchen and fireplace
www.Vantage-Home.com

Remarks:
1000 feet above sea level on a sundrenched hilltop, only minutes from the beautiful Monterey Peninsula coastline sits a secure and secluded 7000 sq’ California contemporary residence aptly named “The Vantage.” Enter the grounds through a custom designed steel gate left to rust naturally in the elements and all evidence of your neighbors disappear. All that is left to look at from this perfectly positioned home are the distant vistas of mountains, eroded valley walls, some city lights and part of magnificent Monterey Bay from this tastefully landscaped 6 hilltop acres. Once inside, the eyes are delighted with a monochromatic feast of textures varying from a smooth French ceramic tile floor, horizontal slats of mahogany wood trim, rough textured stamped stone, square knit designer carpet, smooth plaster walls and even polished concrete countertops. Mix in a little stainless steel here and there and this treatment just accentuates the tasteful artwork on the walls and beautiful views beyond the sheets of glass. It is soothing to the soul, like going to your favorite spa, and continues throughout the entire home. Living here is easy. The main level has great flow and offers everything day to day living requires; A large formal living room with a gas fireplace, a chic formal dining room with a stainless steel water feature, an incredible kitchen with hand built mahogany cabinets and enough appliances to make any chef happy, a butler’s pantry, a family room with a fireplace and a built in plasma TV, a large balcony with an outdoor dining table and a hot tub, a 700 bottle wine cellar with a very cool cracked glass ceiling, an extremely hip powder room, a nicely sized master suite including a modern bathroom and a zen like private courtyard, a guest suite overlooking the pool, an office with hand built mahogany cabinets and bookshelves, one of 2 laundry rooms, a mud room and the main garage for 3 cars. This entire level of the home has a multi-zoned radiant heating system, and many of the rooms have theme lighting controls and low voltage lighting. Oh wait, there is more…a lot more. The upper level has “kid’s wing” plastered all over it! It has two bedrooms, a family room and a full bathroom with dual vanities. The family room has a TV and a surround sound system which is perfect for watching movies or playing video games. Of course the family room could be converted back into the third bedroom if needed. The lower level is where all the fun starts! You might want to refer to it as “Club Vantage.” It is perfectly set up to handle your down time away from the office by yourself or with small or large groups of friends. Want to work out? No problem, there is a large workout room complete with mirrors and a wall mounted TV over the treadmill. How about a sauna…Again, Club Vantage has you covered with a large steam sauna. In addition the “club” level has a very large game room, a full bathroom, a wet bar and the second laundry room. What would Club Vantage be without a pool! Just outside the game room is a large patio area that is protected from the late afternoon breeze. It is the perfect place for the solar heated pool, an outdoor kitchen, gas fireplace and outdoor dinning room. Keeping with the Club Vantage theme, there is a 5 hole putting and chipping green to fine tune your short game, a bocce ball court, lush landscaping and plenty of lighting for evening gatherings. Other noteworthy amenities include an audio system that pipes sound throughout the entire home, two large storage areas on the lower level with roll-up garage doors along the back of the house with driveway access, which is great for extra storage but could house a couple classic car projects. In addition, there is a large two level barn on the premises, various fruit trees, raised bed gardens and a 30,000 gallon water recovery and storage system that ties into the plant irrigation. The Vantage has a lot to offer its new owner. At nearly 7000 sq’, the floor plan flows and the layout is clever so you do not feel like you are living in a large home. The views stop you at every window and the indoor décor accentuates what lies beyond the glass. The grounds and outdoor living spaces are impeccable. You will find yourself spending endless summer days enjoying this warmer micro-climate by the pool or in the yard and countless evenings soaking in the golden colors of the setting sun reflecting off the rolling hills, mountains and valleys to the east from this wonderful outdoor oasis.

Monterey Peninsula Home Team
Lynda Nichols & Mark Bruno

831.626.2276 Lynda

831.626.2277 Mark

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View Our Other Listings

Coldwell Banker Del Monte Realty

501 Lighthouse Avenue
Pacific Grove, CA 93950

831.626.2226

Monterey, CA Home for Sale - 855 Oak Street - $499,500

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Tue, 03 Mar 2009 20:40:10 -0600

Weekend Home

$499,500

855 Oak Street, Monterey CA

Features:

2 bedrooms, 1 bath
Charming Monterey Bungalow
Artistically Decorated
Beautifully Landscaped Outdoor Space
www.855OakSt.com

Remarks:
No boring hotel room decor here! If you are looking for a very stylish second home in Monterey without busting the piggy bank wide open, this home is a must see! Character and style abound in this very cute two bedroom, one bath bungalow located just a few blocks from Cannery Row, the famous Monterey Bay Aquarium, restaurants, shops and the beach. Although this bungalow is small, it packs a powerful punch inside! The home has upgraded dual pane windows, newer flooring, fresh tile and of course fresh paint on the walls... And no neutral colors here either! Prepare yourself to be lifted up from the daily drab of neutrality and immersed into a stylish color pallet that stimulates the soul. The lush front and back yards are incredibly well landscaped and include drip irrigation. Enjoy all the Monterey Peninsula has to offer from your own vacation getaway spot. Contact your Realtor to see this special property.

Monterey Peninsula Home Team
Lynda Nichols & Mark Bruno

831.626.2276 Lynda

831.626.2277 Mark

View Our Website

View Our Other Listings

Coldwell Banker Del Monte Realty

501 Lighthouse Avenue
Pacific Grove, CA 93950

831.626.2226

Monterey Beach House for Sale - 555 Robinson St. Monterey, CA 93940

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Tue, 03 Mar 2009 20:36:13 -0600

Urban lifestyle!

$499,500

555 Robinson Street, Monterey CA

Features:

2 bedrooms, 2 baths
2 bedroom 2 bath
Private entrance to second bedroom/bath
Great central location
Close to beach, downtown Monterey, the Wharf
Off street parking
www.555Robinson.com

Remarks:
2 Bedroom, 2 bath cottage close to the heart of the City of Monterey with white picket fence; here is an opportunity to live the urban lifestyle without its hassles. For breakfast, walk to Paris Bakery and enjoy the best croissants west of the Eiffel Tower, jump on your bicycle and ride the trails all the way to Fort Ord. Feel like surfing? Grab your board and run to Del Monte Beach. Walk to world-class restaurants and see a foreign film in the evening. There is time for all this, because the house and the yard are extremely low maintenance. Fenced yard and off-street parking are covered with pavers. Enjoy easy street.

Monterey Peninsula Home Team
Lynda Nichols & Mark Bruno

831.626.2276 Lynda

831.626.2277 Mark

View Our Website

View Our Other Listings

Coldwell Banker Del Monte Realty

501 Lighthouse Avenue
Pacific Grove, CA 93950

831.626.2226

Home Sales Slow Over the Holiday

Mark Bruno (Monterey Peninsula Home Team - Carmel, CA - Coldwell Banker) — Tue, 03 Mar 2009 20:29:27 -0600

With the Holidays just behind us now, the numbers for Monterey, California are a bit on the sluggish side, which is to be expected. The number of sales in January reflects just how little was going on here in Monterey in the month of December. With jumbo loans still very difficult to get, and with the over abundance of lower priced investment opportunities in the surrounding areas, it is no surprise we only had 3 closed transactions for the month. But as you can see, there were only 5 sales last year in 2008 for the month of January. Historically the month of January is slow for Monterey and the rest of the Peninsula as tourism is slow, the weather is sometimes a challenge, and the locals are not making any significant moves over the holidays.

The real difference can be seen in the number of pending properties and in the average and median prices when compared year over year. January of 2008 saw 14 properties pending at the end of January while this year there are only 6! That represents a significant slowing in buyer activity. The average price is down 30% from a year ago to $455,000 and the median price fell 34% to $430,000.

Buyers are very particular right now and are looking for a deal. Foreclosures are starting to impact non distressed sales and buyers are becoming more bold with their offers and sellers are realizing they may not get a better offer than the first one. This can be seen in the sales price being 14% less than the asking price on average.

Sales in Monterey were rising steadily the second half of the year as many first time home buyers are taking advantage of the lower prices available to them and I would expect them to pick back up where they left off once winter ends.

Days of inventory hit a 2 year low in December. This was partially due to a strong month of sales and many sellers taking their homes off the market for the holidays.

Prices on the Monterey Peninsula rarely go down like they have in recent months! This is a great time to take advantage of the lower prices and the historically low interest rates to finally own a piece of Monterey real estate.

The real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or property, call me or send me an email.

Monterey, CA Real Estate Statistics

Listings in Monterey, CA